Debates of all sorts discussion

I don't know how to directly go about answering the question in generalizations, so instead I'll share an anecdote and hopefully lay down a concrete example to discuss.

At my university, the football team recently advertised with a "Cinco de Octobre" party that would serve things like nachos and burritos and host a photo shoot and costume contest - whoever dressed the most 'Mexican' got some prize. A lot of people saw no problem with this, but several Latino/a groups on campus were outraged and had the whole event cancelled. Students were debating for days whether or not this was acceptable.
Those against the event claimed it was a mockery of Latino culture, that nobody wears sombreros and whatnot anymore, and that the food was stereotyped. They also brought up the obvious connection to Cinco de Mayo and how many Americans supposedly think that's the Mexican Independence Day, and that the event would not educate anybody about it at all.
Those for the event basically said that dress and food are important aspects of a culture and that there is no reason people born outside of a particular culture can't wear traditional clothing. The event was not meant to caricature the culture in any way; it simply provided a theme people could elaborate on.

Thoughts on this?

The thing is, while the foods may be stereotyped, they still are of Mexican origin, and while of course most countries don't wear the 'traditional' costume in the modern day, sombreros or whatever were the typical outfit in the original culture. (I would also like to point out that my university is not compromised only, or even mostly, of whites, so nothing is ever hosted "by white Americans for white Americans". It's in upstate NY - not a hugely racist area.)
We certainly have events on campus where Latino/a students host celebrations of their culture, but isn't it a bit racist to say only they are allowed to have Mexican-themed parties?

I do agree that seeing people perpetuate dumb stereotypes about you can be exasperating. What would you suggest to amend the planned party?
It varies. Some people choose to live in dorms that specifically celebrate Latino/African American/Native American culture and residents of those halls tend to clump together, but most people here really don't care what a potential friend looks like.