Race terminology

For the record going forward, SAs (including the government) separate everyone into one of four categories:
1) Black African
2) Coloured (black/white mix)
3) White
4) Asian/Indian

Let this be the disclaimer that if I refer to "coloreds," I am using official terminology.  I find it interesting that they are separated out.  I'm interested to see if they live in a "no man's land" in society.

Clarification: This post wasn't intended to say that SAs shouldn't use the term "colored" -- in fact, closer to the opposite.  I use it because it's the accurate, acceptable term in SA.  I posted this because "colored" now has negative racial connotations in the U.S. and I wanted any reader from the U.S. unfamiliar with South Africa to understand why I was using the term.

(That does not negate my question, though -- I'm still curious to see what they think about their place in a society that went from white apartheid to rule by the ANC, an organization that for most of its history accepted only black Africans.)