Well, Sowell would approach it from an economists' view, wouldn't he?
He might be right, but the lack of assimilation is far too important. A perfect example of this (and supporting Sowell's thesis) is medieval Spain. When the Spanish expelled the Moors, they viewed the Jews (who played the middleman role, often) as collaborators. Jews form an independent culture and when there are nationalistic movements, they are the most obvious outsiders, until recently because they had noplace else to go.
Consider the term Anglo-Saxon. There are no Angles and no Saxons anymore.
Ask some of the German freepers about your last sentence. There are definitely still Saxons. Furthermore, many English (derived from Angles, and commonly termed Anglo-Saxons) distinguish themselves from their fellow Britons (Scottish, Welsh, Irish, Manx) by their Angle, Jute, and Saxon heritage.