I was never big on Race as Class, probably because I started playing with AD&D and not B/X. It wasn't until I came across ACKS and it's racially themed classes that I saw the potential of Racial Classes. When I decided to do a release based on halfling racial classes for Swords & Wizardry, ACKS was certainly an inspiration.
I don't think racial classes are necessary but in the right campaign they can add depth.
Do you use race as class, racial classes, none of the above?