"I do think that some of these terms, especially "neo-Nazi", "neo-Confederate" and "neo-Con" or "neo-Conservative" are an attempt to connect those who have Southern leanings and those who have Conservative views with the most vile of the three, namely "neo-Nazis", white supremacists, the Klan, the Aryan Nation, etc."

Exactly, and most people will not even bother to find the correct meaninmg.

"The neo-confederate movement is a political and cultural movement based in the U.S. Southern states that is characterized by celebration of the history of the Confederate States of America (CSA) and support for the CSA's aims. Neo-confederate issues include states rights, such as nullification (in which state laws override federal laws), a "pro-confederate" view of history, particularly regarding the American Civil War, and support for traditional culture, including Christianity. ...

en.wikipedia.org/wiki/Neo-confederate"

Just one example

http://findarticles.com/p/articles/mi_qa3827/is_200612/ai_n17196123/pg_5

"After Rep. Tom Tancredo of Colorado, a Republican who favors tougher immigration policies, addressed a Columbia, S.C., event that its organizer noted was open to all. the SPLC falsely characterized the event as being sponsored by the League of the South. The center considers that obscure group to be a "neo-Confederate." "white nationalist" hate group."

So yes you are correct, itt has become a term to use in connecting hate groups.

GP