The point of having a myriad species and subspecies is so people can feel validated for being something specific or special rather than a generic, one-fits-all race of "Canine", "Feline", "Avian", etc. The latter means your appearance and identification depends on your imagination, and that's not as validating.
The issue here is that the game already has a few elements where we have to rely on our imagination to get any enjoyment out of it... like the sex. Adding more of it is 1) absolute laziness from the dev's part, as that's leaning on the player to do most of the legwork themselves and 2) may invalidate the point of playing the game since most of it comes from our head anyway. It becomes a pretending game, no different from Patrick and Spongebob inside the box, using their imagination to play.
That being said, if the point of having many species is to feel special, then the game absolutely fails on that front. There's no recognition for starting as a human and turning into a furry later, no flair or purple prose between a generic rat-morph or a rare, rainbow alicorn. The only distinction you will ever get is if you remain fully human or turn into a demon. That's it. What's the point of having a bazillion species if none of it matter?
I agree with you. I'd much rather play the game with generic, one-fits-all races than what we have. At least then we'd get the benefit of less bloat and better performance... Because even if I disable 80% of the options in the game's menu, the code is still there, taking space and eating RAM.