damn mate, instead of praising me for even knowing a bit of german you go straight to the damn grammatical thingie....no i'm hurt and a flame war will ensue

Well, I said I agree with the definition you proposed, what I also said was that perhaps that is appropriate in cases where one country has many nations/peoples/tribes etc in it, as for example modern day UK (which has welsh, scots, english and irish) and so many others while for example in other countries like Portugal or Italy that notion isn't very approriate because (generally speaking) the vast majority considers themselves to be one people (as a whole) and identify that people with the country.