Hyperspectral image (HSI) classification is a cornerstone of remote sensing, enabling precise material and land-cover identification through rich spectral information. While deep learning has driven significant progress in this task, small patch-based classifiers, which account for over 90% of the progress, face limitations: (1) the small patch (e.g., 7x7, 9x9)-based sampling approach considers a limited receptive field, resulting in insufficient spatial structural information critical for object-level identification and noise-like misclassifications even within uniform regions; (2) undefined optimal patch sizes lead to coarse label predictions, which degrade performance; and (3) a lack of multi-shape awareness around objects. To address these challenges, we draw inspiration from large-scale image segmentation techniques, which excel at handling object boundaries-a capability essential for semantic labeling in HSI classification. However, their application remains under-explored in this task due to (1) the prevailing notion that larger patch sizes degrade performance, (2) the extensive unlabeled regions in HSI groundtruth, and (3) the misalignment of input shapes between HSI data and segmentation models. Thus, in this study, we propose a novel paradigm and baseline, HSIseg, for HSI classification that leverages segmentation techniques combined with a novel Dynamic Shifted Regional Transformer (DSRT) to overcome these challenges. We also introduce an intuitive progressive learning framework with adaptive pseudo-labeling to iteratively incorporate unlabeled regions into the training process, thereby advancing the application of segmentation techniques. Additionally, we incorporate auxiliary data through multi-source data collaboration, promoting better feature interaction. Validated on five public HSI datasets, our proposal outperforms state-of-the-art methods.