Generally, those European languages are referred to as Romance languages, i.e. those peoples whose language developed from that of the Romans. In that sense they could be considered "Latin." During the crusades, there were various Latin kingdoms set up. Since indigenous people often did not distinguish between European ethnicities and, since their learned language was Latin while their spoken languages were variable, it was easy to define them as a group as Latin rather than a bunch of different groups that were all trying to take over the Middle East. However, originally Latin referred to the region of Latium where Rome was founded and preceded by a nearly legendary city called Alba Longa.

Etymonline states that Latin America has been used as a cultural identifier since the mid-nineteenth century, and Latino since the mid-twentieth century. My best conclusion would be that with the various peoples colonizing the Americas, the reasoning was similar to that of the crusades. The French, English, Portuguese, Spanish, and Dutch were clearly different peoples, but how does one group them all together? Well, they all worship the same God (for the most part) and the learned all know Latin.

Here are a couple of books that you may be interested in:

(1) Marcus Terentius Varro. On the Latin Language (Loeb Classical Series)

(2) Michiel Arnoud Cor de Vaan. Etymological dictionary of Latin and the other Italic languages (2008)

(3) Charles William Dunmore. Studies in Etymology (1993)

(4) Horace G Danner. An introduction to an academic vocabulary : word clusters from Latin, Greek, and German : a vade mecum for the serious student (1985).

(5) Steven Norman Dworkin. A history of the Spanish lexicon : a linguistic perspective. (2012).

Hope this helps a little. Happy reading!

Latin America refers to a region in the Western Hemisphere where the majority of the inhabitants are speakers of Spanish and Portuguese (Romance languages descended from Latin). This region was primarily colonized by people from Spain and Portugal. Latin America usually includes Mexico & Central America, the Caribbean, and South America. Most people in Latin America speak Spanish. Brazilians speak Portuguese. Brazil is the most populated country in Latin America.

In addition to people with ethnic origins from Spain and Portugal, this region is also populated with people from all over the world (Africans, other Europeans, South Asians, etc.) and the indigenous population. Many, if not most, Latin Americans are of multiracial heritage. The majority of these people are Catholic.

Countries that speak French (Haiti, French Guiana, etc.) are usually included considered culturally Latin American because French is also derived from Latin and these countries are Catholic. But Quebec isn't included in Latin America. This is because Quebec is located far away in North America and its history is more intertwined with that of the rest of Canada and the US (both of which are English speaking and predominantly Protestant). Small French speaking parts of Louisiana are also not considered Latin America for the same reasons.

Countries that speak English are usually not considered culturally Latin American. These countries include Jamaica, Guyana, Belize, Virgin Islands, etc.. Same thing with countries that speak Dutch (Suriname, Aruba, etc.). This is because English and Dutch are Germanic languages and these countries are predominantly Protestant.

I can only speak for the American perspective when it comes to classifying people as Latino/Hispanic. Latino or Hispanic describes a person with origins from a Spanish speaking country in Latin America (geographically defined in the first paragraph). Portuguese speaking Brazilians are not considered Latino or Hispanic. Neither are people from English or Dutch speaking countries in the region.

Latino or Hispanic is not a race. Latinos or Hispanics can be of any race. In the US, most are mixed race (especially mestizo or mulatto) or white. A person can even be Asian and Latino. For example, Peru's former president, Alberto Fujimori, was a Peruvian of Japanese ancestry. People of pure Spanish blood are considered Latin American if their families are from the region. People from Spain are considered culturally European. Italians, Romanians, and French people are technically Latin people but they are also considered culturally European if they have no origins in Latin America.

Below have hit on part of it. Basically, as the Spanish Empire pulled back from (was kicked out of) the southern part of the Western Hemisphere, you were left with a bunch of separate countries that shared some strong common heritage. The terminology coalesced in the mid-19th century when the French pushed "Latin America" as a term. This was to their benefit, as it allowed them to imply cultural kinship to the area, which was also where they were trying to expand their power.

From this essay: http://sitemason.vanderbilt.edu/files/b/bqYe9W/Eakin.pdf

Apparently first used by the Colombian, José María Caicedo in 1856, it was quickly adopted by the French under Napoleon III to provide ideological cover for his imperial and colonial ambitions in the Americas. 10 This subtle but important shift from Spanish, Hispanic, or Ibero America to Latin America had (and continues to have) powerful implications for defining a field and a region.