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The RP of it basically consists of the character repeating like a broken record something to the extent of "Reveal yourself" etc or such.
That is sad, I agree. But yeah, if you pick a demon/seraph in a starting city or some such, I would assume that it was for the sole purpose of hiding your identity. However, there are cases where this "broken record" approach is completely validated: for example, when I played Desdomos I took a hard-ass approach to the law, being hidden, invis, disguised, polymorphed, using a charm, casting a gate within Sith'a'niel could be, in extreme cases, be punishable by death - I think the post is still up somewhere.
A run-of-the-mill half-elf scout chilling in an inn chanting that mantra, however, I would blatantly ignore, or tell him it was none of his business. If your goal is not to hide your identity/appearance, then I would never choose a spectacular race, and if the responses you have been running into annoy you like it seems, I would urge you to do the same.
Best of luck.