I totally agree with you here. These rules don’t make racism disappear but make it far more difficult to use it as a tool (passively or on-purpose).

At least if someone (anybody, including politician, company) use these terms, they will be immediatly stopped with more ease than your current system.

You still have a need for watcher (justice system, neutral party like associations) to keep track BUT nothing official can track your race in any documents at all level. That include the resume of an employe or even a customers service listing. You will have immediate sanction and bad PR for the company/individual if you do that.

Same for your religion or your political party by the way. They are too much officialy tracked and categorized!

Racism will always exists unfortunately but all these laws can reduce the global impact on the population. And put on shame the one using it as discriminative element.