I think that race or species depends on what you're talking about. I mean, elfs could just be people with pointy ears. Orcs on the other hand, really depend on where you are or what you're doing/reading. The dwarves/all the small people are pretty much the same things anyways, so I'm not so sure they're different species. In the end, I think race and species have melded together to form a compound of sorts where they both mean the same thing. In Tolkiens books, elfs, orcs, and humans were all pretty much the same people. I mean, if elfs and humans could interbreed, that probably meant orcs and elfs, and humans and orcs. So it really depends on what the environment is, be it D&D, Tolkien-pure, or any other manner of things.
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