Any way, the term is no more insulting than "sucker" (Illinois), "Hoosier" (Indiana), Rackensacker (Arkansas) or "Mudsill" (Midwesterner) -- or dare I say it? "Yankee".
Besides, judging historical documents by modern-day standards is a tool of revisionists and the politically correct. I much prefer the term to the nickname "The Show-Me State", which was an insult of Colorado miners against their Missouri counterparts who were not familiar with the peculiarities of placer mining.