My personal setting tries to strike a balance.
Orcs and goblins are fairly mundane (although they are mostly baddies). Savage and brutal, but not particularly otherworldly.
Dwarfs are borderline - they are fairly ubiquitous and not very hard to find, but they're weird as hell. Their crafts are legendary but they're not too keen on selling.
Elves are creepy fairies that appear almost entirely human in physique and behavior until they don't. And then you regret not running away as soon as they showed up.
Any parties should be majority human for flavor reasons, but an odd dwarf or orc PC can spice things up a bit.