I think it's possible to live as a theist, but it's rare. Look to the saints and to the social outsiders for genuine religious attitudes. The outward displays of piety are another matter, since they can be performed by nonbelievers, too, which was precisely Jesus's point about rampant religious hypocrisy.
All labels are for convenience, and working with them gives us an abstract kind of understanding (propositional versus experiential knowledge). Are you a nominalist who's against all labels? In my article, "Beyond the Shibboleth of Racism," I argue that concepts in general are models, which means they're generalizations that inevitably simplify or idealize. So they all falsify the real facts (what Kant called "noumena"), but they're useful as humanizations of the unknown that enable us to extend our home territory, as it were.
So racists oversimplify, but their distortions are based on the more fundamental cognitive act of ignoring differences that are irrelevant for practical purposes. Racists just do so in an especially mean-spirited way.
