Not only was she terminated for not adhering to accepted classification before being hired, she has not been able to find work since with few to tell her story. So as open minded and tolerant as you think you are don't YOU still have a long way to go?
Actually, I believe it is one of the questions required by the EEOC to be on the application. You don't have to answer it, though.
How could the EEOC enforce "diverse" hiring practices, if that question isn't somewhere in employees' files? They couldn't.
EDIT: I just looked it up from the EEOC website. You can't ask race/gender relations "pre-employment". Which means the employer has to put it on the "new hire" paperwork, so it will be in the employees' files if an EEOC complaint is filed. (because employers are assumed guilty, unless they can provide evidence of innocence)