Would you have imagined in a million years that this example would have been anything but pure hyperbole even ten years ago? It's insane.

Yep, I agree with your point completely. It's a word. There are times when it's appropriate and even necessary to use it. To pretend that black people are incapable of differentiating between times like that and times when it's being used as an attack is ridiculous. Such a shame it's difficult make this simple point without controversy today.