The over broad lumping together of diverse ethnicities and even races irritates my wife no end. She will say she is Thai, period. She has no similarities with Afghan, Indian or Turk to begin with. Neither does she see herself as Chinese or Japanese even though there are similarities.
I’d say the term Hispanic has similar problems. People I know identify with their country of ancestry (Mexican, Cuban, Columbian, etc. ).
Like the concept of ‘white’ in Europe. It doesn’t really exist in the way it does here. People are identified by their nationality, not their skin color.