Iksar are better. They get an innate AC bonus, and the Iksar AC bonus is not only added to the total AC soft cap (like a shield), it is multiplicative with the innate Monk AC bonus. This means on top of their race bonus, Iksar also get a larger Monk AC bonus than Humans do. Iksar also get the famous regeneration bonus.
Faction issues are largely not an issue since monks get sneak, allowing them to cheese the factions requirements of all merchants and most quests.
Now, humans have their advantages too. Humans get more HP (+5 base stamina = 20hp @ 60) and better resists (+10 svc). Although these bonuses are marginal, hp and resists are a pulling monks most important stats. I still recommend Iksar.
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