The idea is important because the indigenous English citizens are in danger of losing their national identity.
This idea should in no way be construed as racist. However, on nearly every form where ethnicity is required, there is there no provision for English. It's either British, or European. I, as an Englishman, consider myself to be English, not British or European; as I'm sure a Welsh, Irish or Scotsman would consider themselves Welsh, Irish or Scottish and would be rather aggrieved if they couldn't express their own national identity.