I feel mixed on the term "people of color." On one hand, I agree with you two. It gives the impression that white is normal / default and everyone else can just be grouped together as a general whole. On the other, I think it's useful when referring to the marginalized racial groups as a whole. "People of color" are denied many opportunities, "people of color" have to deal with their culture being attacked and erased daily. "People of color" (in western society) most certainly deal with struggles white people do not have to deal with. 

Maybe some feedback/advice on this would help. I personally don't use the term because of my mixed opinion, but I see it very often and kinda just stay quiet because I'm not sure what to say, lol