@OP
I think Nationalism in the sense of nation-states is still a solid concept. There are, obviously, lines that are blurred like PLO, terrorists, etc. But, in the end, every Nation-State looks out for their own and teaches their own rhetoric. Every, every country indoctrinates with the notion that they are the best nation, have done things the best, etc. Every textbook is written for their own countries. America, my fatherland, is guilty of thi--but is not exclusive by a long shot. So, no, it's pretty alive.
I think what a lot of people are confusing for racism is actually just xenophobia. For example, take the French mockery that's pretty prevalent here. I don't think people are saying people of French decent are innately inferior, but are simply making comments--albeit ignorant--on the French culture. If there was a term for culturaist I'd use that.
To be honest, America does pretty well as far as race goes. It's bad, yes. But, our aspirations are pretty high too. Racism is everywhere, in every country, and I'll ROFL at you if you think that there's any innocent, color-blind countries. This doesn't mean, though, we shouldn't aspire to be better.
I am of Korean (if you ask which one I'll stab you) decent. This is what I consider to be my motherland. Being bi-cultural has given me a pretty unique perspective on things. I can see the flaws in both cultures, and I see a lot in my mother country. Aside from the work ethic, and sympathy for the years of devastation Korea has gone through, I"m honestly pretty ashamed. I'm proud that it coudl go from the second lowest GDP int he world to a Top 10 country. But, the social and welfare issues are 50-years behind.