To remind, as being I think relevant here, this was my OP, in which, note, I explicitly refuted the admissability of "Italian" as a racist term -

Subject: BS: 'Racism': catch-all accusation?
From: MtheGM - PM
Date: 21 Feb 11 - 10:05 AM
I gather from an article by Gabriele Marcotti on the back page of 'The Game' section of today's Times that Gennaro  Gattuso has attempted to justify his attacks on Joe Jordan during and after AC Milan's recent match against Tottenham Hotspur by accusations of "racism", which, it appears, Mr Jordan must contrive to confute.  
The article is oddly reticent as to what Signor Gattuso accuses Mr Jordan of saying;  but I gather from Google that the alleged words are "Italian bastard".  I can understand  possible objection to the second word, but can see nothing "racist" about it.  As to the first, Signor Gattuso is Italian, and I fail to see any "racist" connotations in a statement of this fact there either. Even if Mr Jordan's words have been accurately reported, which he categorically denies, what on earth is supposed to be "racist" in accurately mentioning a European person's nationality? 
I carry away from this incident a distinct impression that "racism" has become a sort of catch-all complaint when anyone feels aggrieved for any reason; an unanswerable "yah-boo" justification for any sort of immoderate response ~~ even where no reference to "race" as such has in fact occurred.
If so, then surely this is a trend to be vigorously resisted, as liable to diminish and disinfect any genuine instance where racism is indeed at issue.

And here is your response ~~

Date: 26 Feb 11 - 10:35 AM
Sorry Mike, can't see a lot to disagree with here.
People do over-use the term racism, which, as you say, devalues the coin, but terms like 'PC' and 'nanny state' are equally overused as screens to hide a multitude of sins.
Jim Carroll