Lots of words words have some dodgy meanings - moon, and john, and kevin gets used in a pretty sneery way at times.
When a word takes on a new meaning, and that becomes a dominant meaning, you might have to back out of using it in the historical sense. That may have happened for mudpeople I suppose, but it hasn't reached my part of the world yet.
And if they use it to include Jews as well, I imagine they'd probably use it to include ageing hippies too.
Anyway, I'll avoid using it, but if anyone wants to use it about me, I won't be offended.
What do we do if the bastards start using "mudcat" in the same way? (Which isn't in the least improbable, since you can use cat to mean person in some contexts.)