This is a classic example of folks getting offended about the idea of people getting offended.
Native Americans used to be called 'Indians' and now are beginning to be referred to a 'First Nations'. 'Indians' is a word that seems to be socially unacceptable now, but it's got nothing to do with the word being in any way derogatory. Indians (from India) are still called 'Indian'. (Interestingly enough, 'Indians', i.e. folks from India, experience a remarkable amount of discrimination - due to the caste system - in their country that has nothing to do with race.) 'Native American' is just a different term to refer to 'Indians', but either of these terms aren't inherently discriminatory. They just have baggage.
According to Steven Pinker (a Harvard College Professor), the politically correct terms for black-skinned Americans started out as whatever it started out as, but eventually landed up being 'Negro', then 'black', then 'African American'. Okay. Well, the politically correct term for 'slum' was proceeded by 'ghetto', then by 'inner city' then again by 'slum'. Which are correct? I think there is no such thing. Which are offensive? Well, that depends on who hears it.
I used to get offended when people called me skinny.
My sister was born in the US, but only a few years after moved to South Africa (with the rest of us). Technically she's an American who grew up in Africa... If she refers to herself as an American African or an African American in Africa people nod and carry on. She would never dream of referring to herself as 'African American' in the US because people are (irrationally, IMO) sensitive to this term.
In Africa, people are explicitly referred to as either black, white, coloured (partially white/black), Chinese or Indian. No one cares or thinks twice about it. That's just how it is/they are.
Some African Americans refer to each other affectionately as 'nigger', as in " 'sup nigger!', etc. Is this wrong? Well, no. Anyway, who cares since it's not coming from folks who can be held accountable for racism since they're black (oops!) anyway.
I don't think the problem lies with the terminology - unless, of course, it's clearly intended to be insulting. If it is, it's usually not difficult to tell.
It's interesting that, in South Africa, whites are blatantly the minority - 7 million out of a population of 53 million. They don't go around fussing about the use of the word 'minority' to refer to them as if it's an insult. This is because that's exactly what they are. It accurately describes their demographic. Using the same term to refer to African Americans & folks of Mexican or Native American origin is a blatant no-no.
How terminology is perceived is up to individuals. It's understandable that people do get offended by words, but that doesn't make their reaction right or the folks who used the word(s) racist or evil. And legislating supporting these kinds of reactions just seems ridiculous.
Of course, racism is unacceptable. So is classism, sexism and all sorts of other ism's. But the issue of individuals' interpretations of how they personally relate to specific terminology is a personal matter. Although these perspectives are certainly valid and understandable, it makes no sense that they are considered 'right' or are legally upheld.
