I don't think they did it to be racist. Most games have stock styles and more become available down the road, I think it's more like they had their hands tied with releasing the game in a condition that didn't downright kill the game before it started. From a developers standpoint I can easily agree that fixing bugs, and finishing the product on time, is more important than incorporating hairstyles from different races. Those can always be added down the road as part of the DLC or a stand alone bonus to thank players or whatever.