Yes, there's divine magic, and it's just like other type (Elves, for example, have a lot of healing and holy types.  Angelic races mostly have holy and another type.), only it's most used against "evil/corrupt" beings, and for blessings.

Any race is fine, as long as it's not OP.  As for new races, I'd build them around a theme, though the more "evil" or strange they are, the less likely people are to deal with them.  Goblins, for example, aren't liked because they like to steal stuff and are very violent.  Just make them something that could fit in and isn't OP and they should be fine.  Even aliens would work if you want to add them, but the tech level is pretty low so their laser guns, etc, would be seen as magic enchanted weapons.