It's just outdated. Similar to someone using gay to mean happy. Or using Groovy or Right On. It's better not to use terms that separate people from each other based on race. The only race any person should be a part of really, is the human race. But we all know that isn't where we are right now. So, the most respectful thing is to find out what they prefer to be called and use that term instead.
I use the phrase "I dig it" all the time and people just look at me weird. It just feels right. 😄
Pinky
What if negroes decided that phrase "offended" them? Would you still use it?