Of course that's definitely not the only way forward. You can fix unequal distributions of resources by, well, redistributing the resources, which requires acknowledging the existence of different groups and the history of how those groups have distributed resources among themselves. And note that acknowledging the existence of a social construct that distinguishes people into different groups does not imply condoning that social construct.
It's not that radical. If a thief steals my car, the way forward is to recognize who is the thief and who is the victim, and to redistribute the resources accordingly. That does not "simply encourage further division and entrenchment between thieves and victims of theft," or if it does, I think that's okay. We don't say "hey, I'm blind to the differences between thieves and victims, we're all just human beings."