On one side, every party wouldn't be able to communicate with other races... and most people, like it or not, will for some reason have to end talking with someone of the other race. So Elfen/Faeling would have the upper-hand in communicating with each other, but they would be equally handicapped when trying to speak to a Viscanti. The Serenwilde language becomes develope, then everyone from Serenwilde would be able to speak it. 5-6 years later, some "scholars" or interpreters begin learning and teaching other languages alien to their race (or that language from their race). Also... even if tells and says could be affected by Babel, you could still have messages, letter and posts. (Much to my loss)

4, now that I made a Furrikin. And spend half a conversation putting spaces in between the words...

It could work, but only with more racial balances... Imagine a newbie turning up with a really uncommon race and needing help... he'd be completely unitelligible to everyone else and therefore majorly stuck. Maybe when Lusternia has a larger player base, no?

No, it couldn't work. I don't care if the Elfen couldn't speak to the Viscanti, they can still speak to the rest of the commune. I, however, couldn't speak to -anyone-, really. The whole game is about communication. I don't want to have to restrict that to three people who aren't even there most of the time. It would have to have a playerbase 10* Achaea to be even remotely viable, and then it would kinda suck.

Yeah, that would suck.