A question on fantastical racism

This question feels gross but it’s got me curious.

The issue with racism in the real world is that there aren’t any intrinsic differences between a black person and a white person, besides melanin. It’s discriminating against people for something they can’t control, and doesn’t actually have any affect on their day to day lives besides the prejudices of other people.

The Tamrielic races are different- khajiit are living cats with biology that’s almost as alien as the argonians, who lay eggs and certainly can’t interbreed with humans. They are, by definition, different species with meaningfully different characteristics. Most of the elves have similar things about them- the orcs were born from the death of Malacath, for example, a concrete example of them being created by and continuing to worship a (debatably) evil being. There are racial abilities that show a demonstrable difference in the abilities, lifespans, and temperaments of individual races- an orc can go into a berserker rage, an Altmer can regenerate magica at a faster rate.

I guess I’m asking why it’s “wrong” to have opinions about races in that scenario- obviously violence is unacceptable, but there do seem to be meaningful differences between the races, unlike the real world.