ahah it's funny cuz we are polar opposites with respect generalizing. And yet I agree with the rest of what you said.
How can you not generalize? In fact how can you get any facts whatsoever without generalizing? If you put water and hydrogen in the same container you will often get water. but sometimes you will get H3O + O or HO + H. But we generalize and say that oxygen and hydrogen makes water.
You cannot reason without generalizing. It is human nature to generalize. That's why we group EVERYTHING. Verbs, noun, adjectives. Fruits, vegetables, legumes. Skinny, fat, average. White, black, hispanic. Tokyo, New York, London. You see what I mean. Everything in human life is divided into groups and we try to make generalizations based on these groups so that we can understand alot without having to individually explore everthing which is clearly far too time consuming to actually be done.
In fact you are largely hypocritical when you said:
"Racism does exist. It exists in the minds of the ignorant and of the intelligent."
- You generalized ignorant and intelligent ppl as having racism in their minds.
"I don't care who you are or where you're from...you are in some way, shape, or form racist."
- You generalized EVERYONE as being racist to some degree.
"You have your radical racists and your un-intentional racists.  Most people are in between."
- You generalized "most people" as being moderately racist.
"Now the radical racists are people who take it waaaay too far. The people who are racist and don't know it are intentionally good people."
-You generalized radical racists as "taking it too far" and unintentional racists as having good intentions.
So lets not try to be idealists here. Generalizing happens. Steroetypes happen. What people need to focus on is not allowing these stereotypes to form rifts and segregation in socsiety or at the very least to minimize these effects.