I love this kind of page, where you can analyse it from multiple perspectives. Here, there are three, maybe four ways to analyse this.

First, the in-universe way: What is the problem here? Not that goblins were created weaker. They are created different, breed faster and have almost the same intelligence and overall stats as humans. If anything, the goblin race as a whole might be stronger than humans, or any other LA+0 race. No, the problem is that the world is created with XP in mind. And that is something that really can't be undone. As long as people are expected and rewarded for killing other people ("people" being used veeeery broadly here), there will always be a rolling stone effect, with people who are better at oppressing others become even better at that with time. And that is something that is really tied to how Gods work. To survive, they need the souls they create to cultivate XP before giving it to them. And that is the point of everything. Mortals, in the OOTSverse, are really just cattle for the gods. Granted, most gods care for the races they create. They help them, give them spells.... But when a race was created with no real intent and gets abandoned by the god that created them, that's where one can question the goal of one's existence. Is it really worth living if you're only created to eventually become food for a god that doesn't even care? Wouldn't it be better to not exist at all? Or to try to topple the system? If you win, you win everything. Your race becomes more important, more well-fed, gets attention from the gods... If you lose,you cease to exist, but if life has no meaning other than as XP for people to get by killing you, and soul food for the gods, then you lose nothing. Pascal's bet, everybody.

But gods are as much impotent to change anything as mortals. They need souls to survive. And they need to survive for the universe to survive. So there is no real bad guy, here. Everything just tries to survive and live their life normally. But when you are so powerful, even a tiny error (you stop caring about one generic race when you are the god of every race in existence, since everybody is a "Monster" in D&D 3.5) makes millions of people suffer. And there is little anybody can do to change that. Increasing one race's power only means another one will get bullied into XP fodder status. Which leads to the second interpretation.

Second, the metagame: Redcloak thinks goblins as individuals are weaker than other races. That is not untrue. But fixing that would mean having every race have the same power level. What is really pointed at here is the balance of the game. What Redcloak seeks is for the game to be balanced. Not have monsters that are too much weaker or stronger than others, or than PC classes. If we go further, if it wasn't goblins, it would be kobolds, or locathahs, or any monster too weak for its ECL.
Balancing the game is hard. Gods have been at it for billions of worlds. WotC have been at it for 5 editions and countless books. They are all-powerful, in that they can create anything with any power level. But they are not all-knowing, and even when they make a conscious effort to balance things, it never turns out exactly as they predicted in the end. Monks were thought to be overpowered in the beginning of 3.5, to give you some context. And yet, they try. Goblins may have it rough, but they live, and they strive. They could even take a great paladin city. Very few classes are really unusable when well thought out. Almost no monster serves absolutely no role in the grand scheme of things. As Xykon said, "everything is oddly balanced". And that point of view leads to understanding that you can't change everything in one go. That's what Tome of Battle tried. Making martials not suck all at once. What it did was create another style of casting that made previous martials even worse. In-universe, it is the point of view that the Snarl must be contained forever. You can change balance little by little. But flipping the table will only lead to another, greater imbalance.

Finally, the real-world way: I'm not going to speak of it in this post, as I'm not sure how the rules allow it in this case, so I'll switch to another post that you will be able to delete more easily.