What if some of the factions were combined?

it's not a certainty, maybe the races mixed, and each one was related to several races, then there wouldn't be racial hatred, because everyone would have the same relatives :D

let's say YES to globalization!

If all the races in one fantasy city were to mix, society would become even angrier, and hundreds of local conflicts would erupt, as the society would be completely and irrevocably divided into layers. Some would be noble mage-nobles, and others would be drunken "golden-handed" people, fixing sheds for a bottle of ale. And all this would be exacerbated by the natural differences between them, allowing some to do one job and preventing them from doing another, not to mention xenophobia and natural disgust for the abnormal proportions of other nationalities.
So, the quote is another meaningless and ill-conceived heresy, which, not surprisingly, comes from Ara.