Stereotype any other way and you become racist or challenging to an individual. Sometimes grouping can be a positive experience and lead to greater benefits from an individual. The lack of direct 1-on-1 insight from a single person can usually be remedied by collective needs. Have a specialized need? Marketing can try to target you or put you into a niche.
In my Economics class, there are many people of Middle Eastern heritage, from Kuwait and other locations. I can market to this group of soon-to-be economists by understanding their culture. I won’t know their personalities, but I can penetrate their learned desires. Isn’t this what psychics do to assume characteristics of someone to create pseudo-specific generalizations based on how you carry yourself, clothing, and facial features.
When it is perceived to better achieves wants and needs and satisfies sociological preferences, the stereotype is a desired goal. When used to criticize, it is deemed insensitive. But the generalizations are neither positive or negative by themselves. They are just perceived observations.
Racism or admitted culturally rich qualities? Young, urban African-Americans tend to enjoy rap and hip hop. If put in a certain context, it could read as racist:
Blacks have no sense of taste for the skill of technical instrumentation. Young, urban African-Americans tend to enjoy rap and hip hop.
Or it could come from a Black family where a father of a student in high-school tells:
I come home and usually find my kid and his friends doing homework and listening to latest Kanye West release. Young, urban African-Americans tend to enjoy rap and hip hop.