Seeing as we cant play God’s Own Race until Kunark, am I going to be significantly hampered by choosing DE if I am going to be using 2h weps?
There is actual no reason to be DE. Humans have better overall stats, better origin and the DE mask is easy.
Also Humans have better faction to start with as well. Long term none of the racial advantages are really advantages except tinkering if you're into that sort of thing with the debuff in the Drakkin breath weapon being useful though not necessary once you get past TSS
The easiest one to start with is the ogre (if you can handle the aesthetics and taking up a whole hallway) . Their strength gives them a much higher starting ATK and you wont be encumbered just from the armor. Can get a DE mask or just race change later if you want a better bind or want to be iskar.