Glorantha hasn't contaminated it's history and political theory with biological terminology yet, so terms like "race" are as the OP says: pretty meaningless.
That being said, this still could mean that the writers and illustrators are evil racists. But that's not a discussion about a game or about Glorantha so it can piss off and find it's own discussion forum as far as I am concerned. There's plenty of real problems to get self-righteously enraged about and, as Stu wisely suggests, if the illustrations annoy you then just change them.
P.S. Jeff K: doublepost = fail.
--
John Machin
"Nothing is more beautiful than to know the All."
- Athanasius Kircher, 'The Great Art of Knowledge'.
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