I agree with Mikaze and blahpers.
I prefer playing in "morally ambiguous" settings. If a race is evil or not most of the time for me is more a question of their culture then their birth race.
There are exceptions. In my opinion, almost always there are exceptions. Maybe there is one race that simply wants to eat everybody else and no matter how you treat their babies it will happen. That is okay. But every "evil race" being only is creating, in my opinion, boring gaming and boring settings.
Off course, Sewer Rats and other settings like it for beer & pretzel (or, as I prefer, Cider & Salt Vinegar chips) gaming are an exception.I like to play "Hero Quest" too. But these ways of gaming are not really roleplaying for me.
But maybe I grew up with the "wrong" style from your point of view jupistar. I only started playing D&D/Pathfinder about 2 years ago. Before that, I almost only played a German RPG. And in this game, there is no "detect evil" and so on.
No matter what my preference is - IMO the important thing is, that a group decides on the way they want to game before they start. They have to decide how often they want the topic of the game to be "moral questions". Maybe you don't want all members of one race to be evil for fluff reasons but you also don't want to have a discussion about what to do with prisoners every game night. No problem, the GM has enough ways of handling it that way. Or maybe in your world even baby goblins are frenzied lunatics that try to eat a grown human.
As long as every participant knows the way it is done almost everything goes.