I think the issue is that the mod shows up on Steam's workshop and some people might unfairly associate the content of the mod with Paradox themselves.
Still, I don't really think it's a huge deal... They've been making DLC money for years by acknowledging and selling different race portraits and such, so it's not like they're averse to anything race-related. Excluding others when it's meant to represent all of humanity is rather weird, but I doubt many would have noticed it had it not been publicly taken down.







