The abilities are hardly ever used - the active ones are either useless or not needed most of the time
The starting stats make absolutely no difference, my orc can be a better archer than a wood elf in about 15 minutes.
The different way of speaking is purely cosmetic, as are the looks. The background doesn't change anything at all - that wood elf could've been raised in the imperial city for all you know.
If I loaded up a character in full plate armour at level 81, unless they had a tail sticking out you wouldn't be able to tell what type of character they are - racial abilities, I guess, but they're useless by level 15.
Thats still 15 minutes more than a Wood elf.