Mountain Folk mostly need a mechanical overhaul.
It seems desirable to keep them basically "player character shaped" but their scene-length virtue based dice adders never really worked and I'm not convinced that attributes and abilities exceeding 5 (especially as an alternative to dice adders) doesn't appear to have been a good idea since 1st edition.
No, on the contrary, the original sin for Mountain Folk and Dragon Kings was that they were made to be player characters, rather than useful and interesting sources of NPCs for STs running games. They shouldn't be built to be PCs, because that makes them less useful and convenient for nearly all cases where they're used in actual games, and if you provide ways to build useful NPCs for games for them, then the tiny minority of people who ever played them will have a framework they can houserule things if they really want to.
Same goes for the Raksha, who are basically only ever played as NPCs, but ended up with a complicated, intricate, high depth charmset which is directly an agony for STs to use.