I have to disagree. I cannot think of a better word for the state of having advantages over other people by virtue of skin color, gender, etc. When a wealthy man's sons get "legacy admission" to an Ivy League school, it is not because poor black people have been disadvantaged, but because a particular class has been given advantage.
If you only used the word "privilege" to describe those people - the guys who can afford to hire super-expensive tutors etc - then I would agree. But when you talk about "white privilege", you aren't just talking about them. You're also talking about middle class and working class families, all the way down to white trailer trash. Those people don't have any privileges per se. They do have an advantage by virtue of being white, yes, but crucially, that advantage is not privilege. It lies solely in the fact that they're treated as human beings (or at least, more so) than blacks. I don't think it's appropriate to describe normal treatment as "privilege" - it's a right (and I don't want to get into the debate of whether it's a "natural" one or not - it's a subjective categorization that is utterly irrelevant here, in any case).
Do you consider the possibility that the guilt is elicited because of a partial realization of actual guilt?
Yes. It's the same type of emotion as beggars often elicit. But beggars aren't trying to explicitly force people to admit that guilt. If they did, I doubt they'd be very successful. Ultimately, people don't like feeling guilty, and they especially don't like it when someone tries to make them feel guilty, regardless of whether it's just or not. So going from that angle is guaranteed to cause a massive pushback, and increase the racial tensions long-term, even if that increase is masked by a decrease in economic disadvantage. It is an approach that guarantees that color-blindness will never happen, even long after the historical wrongs have been righted, because the process of righting those wrongs will be (and is) perceived by many as unjust itself, and they will seek redress in their turn.
I also don't think that guilt is an appropriate emotion to elicit even from a pure fairness perspective. Most "white privileged" people aren't guilty of discrimination, per se (you could argue that they're guilty of unconscious bias, but even in criminal justice, there is generally no guilt if there's no mens rea). What they're rather "guilty" of is the lack of empathy, and the solution is to make people aware of the issues and relate to them - not feel guilty about themselves. Humans are, on average, altruistic creatures, and if you can make them relate to someone's suffering, they will have a strong incentive to help. But telling them that they're guilty of that suffering is not going to get there - if anything, it's far more likely to make them say that suffering isn't there in the first place (as, indeed, you can routinely see being peddled on Fox News and co).