
Grammatically incorrect in terms of how things are done in America, on Earth, sure. Who's to say whether or not they're using the same indication? If the five races are really just racial and not a species-thing, it'd make a lot more sense to see half-breeds and the like. To my knowledge, there aren't any canonical halflings in Eorzea, so they might be using "race" and "species" interchangeably. I know I was quite irked when XI finally introduced a character who was half-elvaan half-human, just because it upset the status quo so much.
I personally (obviously, given my stance in the first paragraph) prefer to consider the races common nouns. I just don't see a reason it should matter, especially since there aren't any real native lands among them. We're all settlers here. It's not like all Elezen are from Elezia and all Highlanders are from Highland. I think only the location should be capitalized. Gridanian miqo'te, Ul'dah lalafell, Limsan roegadyn. That's your heritage, not your biology.
/rambling, stops writing
I personally (obviously, given my stance in the first paragraph) prefer to consider the races common nouns. I just don't see a reason it should matter, especially since there aren't any real native lands among them. We're all settlers here. It's not like all Elezen are from Elezia and all Highlanders are from Highland. I think only the location should be capitalized. Gridanian miqo'te, Ul'dah lalafell, Limsan roegadyn. That's your heritage, not your biology.
/rambling, stops writing