As for the set of issues you referred to as institutional racism, I still think these conflicts are more hurtful in the long run because they foster the tensions and reactions and anger that eventually lead to the hate necessary for the creation of groups like the Klan. Maybe you can think of overt racism as the spark that from time to time ignites the explosives of racial tensions built up by institutional racism. Institutionalized racism is like a cancer that grows from within and is extremely difficult to eradicate. This eradication can typically only be accomplished via a complete disruption, and in some cases destruction, to the system. Societal chemotherapy, if you will.
Blatant racism is a simpler battle.
This is not meant to imply that this form of racism is not as damaging as institutionalized racism. It is just not a systemwide corruption. Its roots do not penetrate through and attach themselves to the basic principles and psyche of society's machinations. To correct blatant racism, you deal with individuals or small groups as opposed to attempting to adjust the gears, and unfortunately in some cases the foundations, of certain facets of our government and society.