I wouldn't worry about the race/color thing - kids are pretty much blind to those kind of details until they are older and can focus on something besides theirselves.
I've used both in-home daycare and the larger child care centers/preschool and I would say that the progress report seems premature, but the provider might be looking to establish a baseline to measure the child's progress with. Not a bad thing in and of itself. Personally I value a provider who is taking the time to write this kind of stuff down for me - often I'm in a rush to get in/out of there and trying to pay attention to my DD, so I don't have time to have long conversations with her. Also, one place I had her in, getting information out of them was like pulling teeth and a large part of the reason why we moved her out of there and into a different preschool.
The reason for the 'doctor' type assessment might be as simple as that is the pre-made form the provider is working with - maybe she got it from a book or from the county's oversight/licensing agency. Our home daycare provider has a 16-page typed contract that goes into details about vacation days and discipline styles as well as payment/late policies and sick policies - extremely thorough! - and I was taken aback when I first saw it, but she's been doing home daycare for over 13 years and at some point got it put together for her. It works fine, but I was surprised by it. Tell your friend not to get miffed at the 'doctor' like comments but instead to see her daycare provider as a partner - and talk to her!
As for the interaction thing, I totally agree with the other posters here - kids that age don't actually play together. At best, they'll play with toys while near each other, but they aren't actually playing with each other. At worst, they are trying to take the toy another kid is playing with, which causes some interesting moments. = ) She might be getting fussy after only a few minutes because she's still adapting to the new environment, or it might just be because kids that age have an attention span of less than 5 minutes.
Regarding the pacifier comment, hey, every kid soothes themselves differently. My 4 year old is a thumb-sucker and still going strong. My 4-month old loves her pacifier, and her care provider has mentioned it. = ) I've seen other kids who have to have multiple pacifiers with them at all times (my boss' kid had to have 5 in order to sleep at night - one in mouth and two per hand.) The point being, that a) a kid in a new environment who soothes herself with her pacifier isn't a bad thing and it shouldn't be unexpected if she's using it a lot, and b) every kid is different and maybe the provider hasn't had many pacifier babies before.
Before pulling her daughter from the daycare, I would give it at least 3 months - to give her a chance to settle in and get comfortable in the environment. Regardless of all of our opinions however, the main thing is that your friend should feel comfortable talking to the day care provider about anything to do with her daughter, and that includes the 'progress report' - she should ask what a good time would be to call and talk to the provider to discuss the content of the report, not in a defensive way, but just to get more details about the comments and the provider's intent behind them.
Good luck to your friend!