Actually, I'd love racial lockers! I usually only use the tri-sword for halflings, so I know where it's going!
Reducing conversion cost is too good, I'd suggest a bonus that is a free preparation, but you have to take instead of the locker item. Only if you're that race, of course.
Humans: Gain +1 base damage every 2 levels
Elves: Spawn an extra mana potion
Dwarves: Spawn an extra health potion
Halflings: Spawn an extra Hp booster
Gnomes: Spawn an extra Mp booster
Orcs: Spawn an extra attack booster
Goblins: Spawn 3 extra gold piles
I speak chaos.