This is partially related, partially not-so-much. According to the lore/game in various places, interracial breeding is relatively rare. At least, successful stories are rare. Ones that happened are shunned. However, it's implied the adoption between races isn't really rare at all.

So what I want to know is, why do you never encounter NPCs named via naming conventions of other races? You would think somewhere along the line, a nameless, abandoned catboy baby would be found by a nice lala couple, who then proceed to name him Lalatu Tulala.