I think there's something of a difference between what your players do (which you have only limited control over) and what the administration chooses to do. If someone wants to play a Tolkien-style elf when it' snot appropriate, there's not much you can do about it unless you're willing to force them to roleplay how the administration thinks is appropriate.
On the other hand, dwarves running about with lightsabres is pretty #### stupid. I suspect, though, that this isn't a result of the admins REALLY WANTING dwarves with lightsabres and more a function of the fact that they don't have the time, competency, or drive (pick one or more) to flesh out a world that is consistent with the fiction they've chosen to use.
--matt
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