Do you realize how popular hip-hop is? Not to mention how easily the younger generation is influenced by music and media. I'm sure many races who aren't black call their homeboys "my nikka" and etc. This isn't going to stop or get any better. It will only get worst. I know many black folks get upset and think of it as racism but it's far from it.
Doesn't matter how popular it is. It's our music and our slang. We shouldn't let the feelings of others dictate what we say or how we say it. And just because "it won't stop" doesn't make it any less ignorant for them to use words they don't understand.
I agree with you that use of the word doesn't indicate outright racism. But it does indicate ignorance and disrespect for us past and present.
For example. I say nikka all day everyday, but I have enough understanding and respect for the word and its legacy that I won't just go out in public saying it and I definitely won't say it around elder black folks who may be sensitive to it. That's because I understand it, it is a part of me and my parents, grandparents, aunts, and uncles, my kids. No one should be running around repeating things just cause they heard it on the radio or TV.
The quote i posted sums it up perfectly.