I did not know this. when I hear it I think: always moving, traveler, wordly, mysterious, beautiful, exotic. I didn't realize it was something derogatory, I'm sure she didn't either.
edit: I also think of someone who is more in tune with the earth and the healing/medicine it can provide. she has that running theme throughout the album of healers/shamans so I think to her, she means it along very positive lines. I guess ignorance (specifically my own) of an issue doesn't make it a non-issue. I myself have a positive reaction to the word but I am not European or of that descent that would be offended. Good to know