Why is race and nationality ignored so much in the lore? (why does the lore fail)

[Abriael]

If they emphasise scrolling text-walls over interactivity, then no, they don't understand the medium.

Considering that you spend most of the time fighting monsters, walking around and doing similar things, they don't "emphasize scrolling text-walls over interactivity" in general (while it has to be noted that text and interactivity are NOT in conflict, and thinking that they are really means knowing nothing about the medium).
This doesn't change the fact that text is still the best way to convey complex lore, which is what we're talking about.

And yes, they understand the medium quite a lot better than you. That's why they're on the payroll and you're on a forum.