Dunno if you read what i wrote but yes. I don't see this problem on JP and neither on EU as much as it is a problem on NA for many players. Weird, right?
And as i said before, i am not offended by any of this. But some people are. And i think, especially NA, do show really how great and social they are by pushing always heavensward with their need to make fun of others.
And no matter how much you say the words "fantasy race" it doesn't make it less toxic. xD But speaks for you that you defend toxicity. It's a joke if both parties can laugh about it. Which isn't the case clearly in many cases.
It does make sense tho. People define themself over the choices they make. If you hear the whole day long that the choices you made are wrong and you are stupid and silly and less worth for it than others it damages peoples honor and thus feelings. Sure we might now say "Well low selfesteem then" but this is a cultural problem, again. Especially with western/NA players. Ridicule and even hate towards small races is a almost inherently western thing, which is crazy if you think about. Same as the need to make fun on others costs.
But that is exactly why NA is so full of trolls etc, cause they use "free speech" as a cover for toxicity. Which might be good or bad i don't judge about that here tbh. EU then is a bit different, some speech over here in many countries is prohibited by law, so people are a bit nicer to each other. And JP basically has no shout chat trolls and no unrest we see in NA or EU at all.
So yeah, i don't say that any of these ways is better than the other one. I also have a fairly dark humor and heck i offended more people in my life than most other players i bet. But this game is from a japanese company. So at the end of the day we all live or "die" by their rules and standards. Only cause NA has a free speech over anything thing going on doesn't mean this is a thing that is or will be tolerated in a community that inhabits players from so many different cultures.