OK speaking from my own experiences as an Asian-American, or more specifically, a Chinese-American, I think the hyphenation serves a purpose. Now, I've never called myself a Chinese-American, we've always been referred to as ABCs (which is so much easier dont u think) but only amongst other Chinese ppl. If an American approached me and asked me what I am, I would tell them Chinese. I would assume that the American part is a given and that they are asking me what KIND of American I am.
But among other Chinese, it serves to separate us from the traditional Chinese generation. I'm part of the first-generation in my family. I grew up in a very traditional manner but my own values are quite distinctly American. My children and all my cousins' children will likely identify themselves as simply American, because they will likely grow up without the very strict traditional Chinese upbringing. So it's kind of a way to identify how 'integrated' you are. Integration takes time, not just years, but generations too. I'm willing to give all those immigrants that time.
As for all those little pockets around America, all those Chinatowns and Little Italys and Little Tokyos etc., I wouldn't tell people that they should mix together more and that these pockets should cease to exist. They're great reminders of all the little bits and pieces that did get meshed together to form American culture.
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