I do encourage people to be BiS race in PvE simply out of respect for the group. The same way I encourage people to play meta builds and classes. Everybody should do their best to make it as easy as possible for a group to clear content unless the group specifically allows people to play whatever.

However race is one of the least limiting factors for progression groups. Most of the time the people that struggle to hit proper DPS won't fix that by adjusting their race. Some more time on the dummy would help them a lot more.

I say Any race Any alliance ranges from a "must have" to "nice to have" depending on how much and how indepth you plan on going into ESO.

I do agree with that, but I feel like it's very very weighted towards "nice to have".