I agree with the fear and paranoia as the basis but I'm surprised in universe other Federation alien races went along with it. Unless they had their own terrible experience with genetic engineering.I always chalked it up that the Eugenics Wars were so bad that Humanity would rather ban augmentation--and even the possible good that it could do--than take even the slightest risk of that ever happening again. There's no question that the ban was developed out of fear and paranoia, IMO, but I think it also says something about Humanity still having a long way to go in some areas.
I checked TOS, the Space seed episode was a season before Journey to Babel which introduced the concept of a UFP. The ban should have been retconned to be a human only ban not a UFP one.
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