Yeah, it's a bit of a double-edged sword. It could reduce racism by making people of color more visible. Most racists aren't inherently pro-white, rather they're picking some arbitrary criteria for us vs. the others. As a result, making it visible to them that their 'us' is lots of people of color, they'll drop that nonsense criteria pretty quickly.

But of course, chicken-egg and all that, people experiencing racism may not necessarily want to expose their race for the reasons you named, and so they don't become collectively visible.