Let me clarify my original point a bit. The history of the word "Indian" really doesn't matter one way or the other. Aside from the fact that there are conflicting stories regarding the true roots of the word, I was really just using that to point out that there is no negative connotation associated with it. Like "African American", "Native American" is just another example of political correctness trying to whitewash (pardon the pun) over words which are in no way negative. I just feel that "Native American" in particular is degrading considering the circumstances. This might just be me being a bit touchy though.
Also, it should be mentioned, the term isn't 100% accurate when referring to Indians. In addition to them, Alaskan natives, native Hawaiians, and Pacific Islanders are all classified under the title "Native Americans."