The idea that nGCD punishes generalists and encourages more narrow archetypes is... well, true.

But IMO, it's looking at things from the wrong end. The way the Oblivion skill system works, there is pretty much no reason at all to specialize in one skill set. This seems totally unrealistic to me: in the real world, people (and businesses, and biological species) specialize to gain an advantage. Why is there no advantage in Oblivion? So, nGCD creates one. Warriors will have more hit points, wizards will have more magicka, and rogues will have higher overall base attributes.
Being a generalist is still attractive, because a diverse skill set provides obvious benefits of its own! (When I get to play, I still almost always play a hybrid.)
Furthermore, the differences become less and less as the character advances. To put it simply: with all skills at 100, you'll have 100 in all your attributes. Everyone's path to that destination is different, but it all evens out in the end. Most characters aren't actually played up to that point, so there will still be pronounced differences; but it's pretty easy to get everything to 25, and no matter your race or class, you'll gain similar benefits from that.
Finally, all of this only describes the defaults. If you want to play a character where specialization has no effect whatsoever, set nGCD.fSkillExpBase to 1.0 and the other exponent settings to 0; the formula will become linear. Do the same with a base setting of 0.95, and specialization will matter, but only based on what skills are highest, ignoring your class.
It's true that a Nord will have slower progression in Intelligence and Willpower than a Breton. However, the influence of your skills is far more important; and again, this effect becomes progressively less noticeable as you advance. Natural talent gives way to experience in the end.
If you want to return racial attributes to a simple "minimum score," set nGCD.iAttrMin to -1. (You'll probably want to adjust the racial offset and/or multiplier, otherwise your starting skills will be rather high.)