This is also part of the tapestry, yes. I still encounter the crushingly naive "racism is over because now everyone is legally equal" argument all of the time, and it makes me despair.
I'm not sure it's fair to blame the terminology of "white privilege", though. Ultimately, the only cure there need be for that is education or some mild research. But people seem keen to be reactionary rather than considerate these days, and subtlety and nuance are almost always abandoned in favour of bad faith interpretations of terms or semantics, because engaging with "what you feel like the term implies" is easier for a lot easier for many people than dealing with the actual issue the term is used to address. We see this a lot with "black lives matter" ("Why not *all* lives matter??"), "cultural appropriation" ("Is it appropriation if black people wear clothes designed by a white person??") and numerous other terms or phrases related to social justice.
The terminology is important and should be carefully considered, since these are the words used to convey ideas. Anticipating the possible effect it might have on the audience is a proactive way of avoiding these kinds of pitfalls.
In American politics, people tend to use labels as bludgeons, and in doing so, we lose whatever subtleties and nuance which one might wish to convey. This is also a culture dominated by soundbites, memes, and dumbed-down, sanitized slogans which rarely mean what they actually say.
If the goal is truly about social justice, then the focus should be on the goal itself. Instead, people seem more fixated on the processes and symptoms of social injustice, without giving much of a clear understanding of causes and solutions.
I agree in part that the cure might involve education and mild research, but it's going to take a lot more than simply that. I don't think anyone believes that "racism is over," but there appears to be less of it now than there was during my grandparents' time. Institutionalized, official racism has been mostly outlawed. The old Separate But Equal doctrine was overturned, along with other practices being reversed or banned.
It seems to me like there is a vested interest in avoiding and refusing to acknowledge these issues, and the first line of defense is always to attack, misconstrue or otherwise twist the terminology in some way to avoid engaging with the subject at hand. After-all, it's near impossible to admit that you or society may have some issues that need addressing if you aren't allowing people the language with which to talk about them. It's just another sleazy, psychological trick the insecure use to avoid examining problems they'd rather not believe exist.
Well, eventually, the subject at hand has to come out anyway, regardless of the terminology or the attempts to attack it. Some could just as easily make the argument that the terminology itself could also be an attempt to manipulate or use some kind of "psychological trick," which could explain why people react to it as they do. For similar reasons, people tend to bristle against a certain line of thinking which has often been referred to as "political correctness." They see it more as a disingenuous tactic and a way of smearing political opposition, than a good faith effort to achieve social justice.
For me, social justice is actually an attempt to overcome identity politics, rather than an engagement with it. From my experience, the use of social justice and its related subjects and terms is no to further separate people by identity, but to greater increase knowledge of the social and cultural differences between us in order to foster greater understanding. In my experience, groups who promote social justice tend to be extremely varied, and far more interested in reaching out rather than dividing. Part of the trap is in thinking that merely acknowledging the differences that exist somehow generates division, when I find the exact opposite is true.
The only real concrete measures of social justice would be in the economic realm. Ultimately, that's what we're dealing with, no matter how you slice it. Anything beyond that is just what people feel, which can't really be legislated or controlled. Social justice can be best achieved through economic and political justice, and this would involve a redistribution of wealth and power in this country - which would require careful examination of the class hierarchy and how power is dispensed in this country.
I don't think it's a matter that "merely acknowledging the differences somehow generates division." I would suggest that more is required than "merely acknowledging." If anything, the "acknowledgement" is incomplete and insufficient, to the point of appearing one-sided and highly selective. It may not be intended that way, but it appears that people are perceiving it that way.
I would also agree with that. Ultimately, it is all a consequence of significant, long-reaching history that will take a lot of time to really get to grips with. The reasons for racism reach as far as remnants of colonialism and hierarchical class structure; systems designed to place a very specific sub-set of people on top and keep them on top at all costs.
Some people look at US history and consider it to be "short," or not quite as long and steeped in tradition as the history of European nations. But US history is still somehow intertwined with that, and it also is rather complicated and oftentimes difficult to characterize in any meaningful way. There's a certain "mythos" about our history and our very national identity which is somewhat of a sacred cow and considered beyond reproach. There's a certain "psychological trick" involved in how we perceive our nation, our role in the world, and our general identity as "Americans," but it would take more time than I have right now to go into.