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I just want to say that ethnicity is not necessarily related to genetics in any way, it’s about your heritage and upbringing. A person can be born and raised in Japan without having indigenous parents. In this way, they are ethnically Japanese if they choose to identify with the culture they were raised in.
So it’s not suddenly racist to appreciate someone’s ethnicity. It’s racist to assume someone’s ethnicity based on how they look.
And what you say about ethnicity being irrelevant to the government is quite controversial. For example, there are various treaties in effect between colonizers and indigenous peoples. Do you think such treaties are not valuable because they are based on ethnicity?
Well yea, ideally colonization would not have happened, but it did. Would you rather the indigenous people had received no consolation at all?