Phyletism

Karl has a good discussion of phyletism and orthodoxy going on over at St. Stephen's Musings. I wonder, to what degree does the phyletic heresy still infiltrate Lutheranism? For example, at our synod assembly last week, there were still plenty of jokes about ethnic diversity because a guy wore a kilt, which made him diverse from the Swedes. We aren't quite as centered on a nation-state, but we are indeed northern european. In our church, our biggest sign in the narthex is in Danish, for example.