There are already 4 new races in the game - but they are currently only available as iconics.
Why not open up Morninglord, Shadow-Kai, Purple Dragon Knight, and Bladeforged as races? (still have to own the iconic versions).
Starting at level one won't give the Iconic past life feat - but since all that work has been already done for the graphics, animation, lore, etc - makes sense.
Many players would enjoy playing an iconic race - but not an iconic toon. Should be a relatively light and easy bit of coding since 99% of it is already there.