The excuse that "Oh, X race is better early on because they have more damage" is dumb. I'd rather have combat like terraria
hylotl shouldnt be able to drown but be more vulnerable to cold (the fact that an ocean dwelling race can even drown in the first place is loving asinine)
glitch shouldnt be able to suffocate, but they get "poisoned" (read: waterlogged) if they submerge entirely in water
apex should be heavily resistant to cold but more damaged by fire (because fur)
avians should be somewhat resistant to cold and take less falling damage, but get a slight slowness debuff from submerging in water (wet feathers)
florans should be even more damaged by fire than apex, but water gives them a bit of regeneration (not as much as a bandage or stim, but still some)
and i cant think of anything for humans right now
loving anything to make the races play just a little bit different, like maybe you're a glitch and there's a chest deep underwater, then you gotta get your hylotl friend to swim down there and get the stuff. No friends? Well you can still just dig around it or drain the water. Granted all these weaknesses could eventually sort of be fixed by armor pieces if you wanted to make or acquire them, but until then it would actually make you feel like your chosen race is important beyond what it looks like.