I think this is the ideology of nation-states, and before that of kings and queens. It's helpful to think of what a farmer in Provence thought was "my group" in say, the 14th century.
I would think extended family and maybe even local community/village/tribe, that is the vast majority of human existence and evolutionary history as a whole. Nations are pretty new.
I agree. That's why racism is a red herring. We are being divided for the sake of division.
