Aren’t both terms equally homogenizing? For the purposes of convenience and being concise the use of these terms is inevitable – like Asian, European, etc.

Within a generation or two, it is likely that this point will be moot. According to the Pew Research Center, there will be “more school-age Hispanic children than school-age non-Hispanic white children by 2050″. So, like “Italian-American” and “Irish-American”, I would imagine that these terms will eventually become a way to identify immigrant groups that contributed to the shaping of American culture.