The times are clearly changing, as they always do. Are you saying that it is “natural and sensible” to be racist and xenophobic? Perhaps it is. But perhaps we can do better.
Yes it is natural to prefer your own ethnicity and culture, which has existed for thousands of years. It is okay to say you want it to survive.
Japan, Korea, China, all have a strong preference for preserving their culture and ethnicity. Japan is 99% ethnic Japanese and has strict immigration laws. Yet they are also tolerant to outsiders who are visitors and we respect their right to govern themselves. I don’t think anyone regards the Japanese as a hateful people, yet by your definition they are indeed “racist” and “xenophobic”.
If the choice is to see your people replaced or be labeled “phobic”, then the obvious choice is to just accept the label and fight for your people.
It's natural to be a bit racist an xenophobic internally. We're all animals at the end of the day who are motivated to protect our in groups and people like us.
The same way as it's natural to have strong feelings of wanting to inflict pain and suffering on someone who's done wrong to us or people we care about.
Choosing not to do these harmful but natural things is called "being civil". Nobody has to be civil, but a civil society is that way because it makes uncomfortable consequences on people who aren't civil.
It is not sensible to be xenophobic and racist in a civil society unless you consider harming others and inviting uncomfortable consequences on yourself as sensible.
But you don't have to pretend. You can choose to be outwardly racist and xenophobic if you want, it just doesn't seem very sensible.
Japan, Korea, China, all have a strong preference for preserving their culture and ethnicity. Japan is 99% ethnic Japanese and has strict immigration laws. Yet they are also tolerant to outsiders who are visitors and we respect their right to govern themselves. I don’t think anyone regards the Japanese as a hateful people, yet by your definition they are indeed “racist” and “xenophobic”.
If the choice is to see your people replaced or be labeled “phobic”, then the obvious choice is to just accept the label and fight for your people.