Can an ethnic group ever have a collective reputation which is deserved?

This addresses one of the things that generated my interest, from the prior thread cited in the OP:

So by your reasoning (Alan Smithee), the camp next door to the Boy Scouts were simply a group of random people, and the fact that they were camping out there would have no association or pertinence to the fact that they were Gypsies, and the parents were being unreasonable in steering the kids clear of them. Is that right?