I do think that looking at the individual's perspective is important here: You've created a system where character turnover is fast, because people want to roll characters to get to the 'real' character they want to play.
When I read this, people start throwing advice out about how they think the game should be played. "Well, maybe you shouldn't think about award races!" But how could they not? The whole system is already in place, and there's a lot of options. Of course people are going to think about award races. And of course, people are going to grind to try to play the award race they want to play. If you make it more difficult, you're just going to frustrate the people who are burning through character after character to get to what they want, and they'll come here onto the forums to complain about how much the award system sucks.
See, when people are talking about pandora's box already being opened, the threshold being transgressed, whatever you want to call it, it's this: When you see all of these wild and wacky races, and you want to play one, you're going to try to play one. That means grinding out characters every two to three months if necessary to get the dumb award you need to play the stupid award race you want to play. I legitimately do not blame people for burning through characters so quickly. To them, those characters are stepping stones to what they actually want to play.
If you think that's, 'Playing Arelith Wrong,' you shouldn't have designed a system that encourages that behavior. Make leveling slower, people'll still do it. Make award timers longer, people'll still do it, they'll just complain more about it.
Because getting back to that individual perspective vs. group perspective, what the individual sees, and this is the important part here, and why we care what the individual thinks, are a bunch of cool races running around Arelith that they're not allowed to play until they shoot themselves in the foot for long enough.
And this leads to... an Arelith filled with flatter, more boring characters who don't want to develop because if their players get attached to them, they won't roll them.
I don't really know what system you could invent that would encourage character turnover so that characters don't stick around forever, but also doesn't encourage this kind of mindless grinding, but here we are. This is Arelith in 2024. This is the system as it stands now.