This is true whether you play to or against the stereotypes. A race’s traits, its history, its relations with other races, and the culture that all of these things imply-all of these frame your character.
Yet since both biology and culture are mutable-especially when one considers the powerful forces of magic-racial traits can be so diverse that two elves can be extremely different while still manifesting aspects of their shared heritage and culture. Race mixes biology and culture, then translates those concepts into racial traits. It both provides a starting point for character creation and sets the tone for a character as it progresses. In fantasy roleplaying games, race is fundamental.