Toady seems to want to stick to traditional folklore for the most part, and I support that as it helps to keep DF a little different.
Orcs aren't traditional, they're modern. We should keep the Tolkien races (halfings and orcs) out of the game to keep it distinctive.
For the most part, all the critter in the game are hundreds of years old, or they're DF originals. "Gremlin" is the only exception I can think of: the "gremlin" is a mythological creature from 20th century aviator folklore, which was supposed to foul up the aircraft's machinery. It's kinda cool to have that be the only exception, since it's not a literary reference, it's a nod at one of the quirkier bits of common lore.
Excuse me?
Tolkien's lore is "traditional" fantasy in it's purest sense.
The idea of basing stuff on "folklore" is funny - which folklore you mean?
American based on limited european countries? Native American full of strange critters wherever you look?
East Asian with so many spirits, gods and demons? Nordic one with giants and dragons and serpents etc? Indian with their many gods and mythical weapons?
What about slavic folklore so popular now due to the Witcher game series?
And part of which folklore are the Necromancers and their towers? And btw, since necromancers are here, where are the djinn?
What about just forgetting about "folklore" altogether and put in canon fantasy that will FIT the DF world?
I think goblins were just a placeholder baddies for the things to come - procedural generated underwater elephant-spider-scorpion men wielding two handed halberds coming to steal your meat from the stockpiles etc.
In case of different races the more is actually better for vanilla DF.
I play masterwork DF since it's 6.1 version. Recently I had to launch vanilla to reproduce the issue.
Seeing it's poverty and lack of substance when compared to MDF reminded me why I do not play vanilla anymore.
Pandashi are simply awesome, even tho they are strictly WoW based.
So - any additions of canon races (halflings, orcs, kobolds, gnolls etc) are always welcome.
No need to limit the world due to some silly "folklore" and traditional views. This is fantasy world we are talking here.
Make it truly fantastic.