Given that the Bioware devs disagree and it is their world, then there IS need to explain it. So let's not call them racist on their own forum website.
Bioware said a lot of things about their world, like how it wouldn't make sense to make MShep gay, until it made perfect sense to make MShep gay. Beyond that, it's possible to say that a particular view is problematically racist without saying that the person who holds it is racist. These are two totally different things, and it takes a lot to be a racist versus to just not realize that a certain view has unfortunate implications.
I don't think DG is racist. I think he's thoughtful, sincere, and does an incredible amount in a pretty shoddy industry to advance an enlighted view of equality. But that doesn't mean that everything he says is above board. Bioware can do wrong.
This is not at all true. Again, look at Jade Empire - would it have made sense for a game built on Asian cultural archetypes, with Asian characters to have other ethnicities roaming around without at least explaining that they were from other parts of the game world?
This is strictly an issue BECAUSE Bioware chose a pre-dominantly white culture during their world building, for good, bad or indifferent. If it was African, or South American, or Indian/South Asian and people were demanding more white people be in those games because white gamers might feel better about themselves, would you be calling the gamers calling for more whites racist then as well?
In regards to Jade Empire, I think it would make perfect sense to have a super cosmopolitan society based on a very particular culture IRL without any need for further explanation. You're acting as if, for example, the Chinese are some form of homogeneous "Asian" group, which isn't true. IRL racial groups are based on pretty BS distictions. We don't need to justify them in our fiction.
And here is the funny thing with "white" culture. What that means is totally up in the air. Let's say you set a game in 19th century Russia. Depending on which IRL racist you're talking to, you haven't borrowed a "predominantly white" culture, because Russians (and slavs more generally) aren't white. In my old country, there's no such thing as a "latino" identity - they're just considered white. This would be a ridiculous notion to Americans. Racial groups are pure culture specific BS.
Representation has nothing to do with "gamers feeling about themselves" and the fact that you think this is what it reduces to is just sad.
Edit: Well, it's not totally true that my former country wouldn't recognize a "latino" identity. We do have a distinction between nordic whites, slavic whites and "latin" whites, but to us "latin" whites include the French, Spanish and Italians - basically all the romance language countries.