I can relate to this, but at the same time I think the lack of diversity does foster a lot of sort of abstract dislike and discrimination, especially combined with religion and the media. The two examples I have in mind are Middle Easterners and homosexuality. In lots of the midwest you won't find anyone openly admitting to be either, and only negative stereotypes or feelings.

[This leads to a stereotypical kind of storyline where a biased individual gains a friend or family member of the given type (perhaps a child comes out as gay or so on), and once the issue becomes real and personal for them, changes their mind.]