As a Monk, I'd argue the benefit from Iksar isn't as much about the AC boost as it is about the extra regen. When FD'ed, it makes a huge difference. The AC is just the icing on the scales.
As far as fashionquest goes, I think both races look horrible in traditional monk gear. It's only in Velious with the advent of the "leather" gear that they start to look awesome.
In the end, do what you like for race - you're the one looking at your character 24/7, so you want to make sure you enjoy it. Humans do get the added benefit of levelling slightly faster, as well as a much easier faction for quests (particularly epic quest).
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