It means you are judging and stereotyping people on the basis of race without even knowing them as individuals.
Criminal profiling is any police- initiated action that used the compliation of the background, physical, behavioral, and motivational characteristics for a type of perpretrator that lead the police....
Here's a bias based profiling link that explains it well: www.wppd.org/about/bbp.htm
Unfortunately no, it is not illegal though it should be illegal
Yes, it would certainly have potential for an interesting argument/debate paper.