This is true. I feel that in 2022 saying any "race" or species is inherently 100% evil (with no expectations under any circumstances) and should be "wiped out" is not only morally wrong (and undoubtedly racist) it is also narratively limiting.
Edit - As a great character once said -
"Only Sith deal in absolutes."
Speaking of the Sith and Jedi, one of the big things modern Jedi got wrong was that if a member fell to the Dark Side the belief was they could never return to the Light Side (both in Canon and in Legends). These individuals were essentially given up on by the Order and often their loved ones by extension. This occurred despite the known fact that individuals rarely did return to the light such as Reven (Legends), Quinlin Vos, Ventress, and most famously of all Vader/Anakin.