Dying - yes.
Making them interracial... I'm not so sure about that. I mean they're racial for a reason, no? Even if there's zero actual lore about the different races/cultures in the game.
But while we're at racial gear changes - please also make them unisex. Yes, it requires some work, but well, we are paying for it, aren't we? Most of them is already pretty much wearable by both sexes (judging by looks and design) anyway.