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D&D is balanced around whatever the DM throws at you and what rewards they hand out afterwards. If there are almost no magic items, then you don't need to worry about whether or not you can use them. Maybe the game is built around spending your gold on founding a kingdom, or a missionary...

Other races? Only if the race is dragon. Or unless you count mages as not entirely human. I always play caster where possible. Though in my many replays of Neverwinter Nights 2 I've often used Kaedrin's expansion to play as a half fiend/celestial, just to see how absurdly powerful I can make...