We actually had a few Pacific Islanders express anxiety with selecting "Asian American/Pacific Islander" because they were worried that identifying as such would subject them to more competition. They were advised to do it anyways.
So, yeah, that's true of API, but its just as true of, say, White.
The API group is basically "everyone else".
https://www.sciencedirect.com/science/article/pii/S000292970...
Yes, "Continental superpopulations" is a more accurate term but it doesn't exactly roll off the tongue...
https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSmcWGV...