All the traits should be inheritable. In fact I believe in addition to animal breeding, There will likely be people who plan to breed characters, possibly for the opportunity to sell them. For instance a Hrothi that can see in the dark bred with a Mydarri that can see underwater might yield an offspring that can do both. There might be a demand for this, and players could sell the child's code to other players. Neran have a 20% increase to skill gain. Imagine that being bred into all the other races.
I guess in theory a group of Mann could get cut off from civilization, but in this game I doubt it will be a problem, especially for anything longer than a generation. People will be exploring everywhere.
Minecraft for example, you can run for hours to the outskirts of the playable area on a minecraft server, and if griefing is permitted, people will still find and grief you.
To touch back briefly on your breeding, I've played a bit of pokemon. I know people who breed pokemon in the game for the best stats. They spend countless hours trying to get perfect values where they want them. I think the same types of people will exist here.
The flora and fauna QA touches on this. (just type in flora fauna QA chronicles of elyria into google/youtube and it should come up) 19:10 is where Snipehunter talks a little bit about what I think you're looking for. In addition I think the Character creation livestream also touches on inheritance, but i could be wrong.