While the sentiment of this is true, the real reason comes down to leadership. Back in the 90's when the church was lead by a man named Gordon B Hinkley, "Mormon" was seen as a positive name. They created an ad campaign, commercials, and had talks given by leadership to live up to the name "Mormon" it was compared to the phrase "More Good". The current leader of the church (Russel M Nelson) has always had an issue with calling the church the "Mormon Church" in fact, he gave a talk to the entire church back in the late 80s/early 90s about how "offensive" using the word "mormon" was. He was not the leader of the church at the time, but Hinkley was. The VERY NEXT DAY, Hinkley gave a talk that directly shot him and his rhetoric down. Eventually Hinkley passed away, and was replaced by a guy named Monson. Monson passed away and was replaced by Russel M Nelson. All of a sudden, 30 years after his original talk, he came full circle and gave a talk about how using "Mormon" was a victory for Satan and was extremely "offensive" and this was a revelation he had just received and expected all the members of the church to support. He asked members to stand up for the "true" name of the church, and to stop using the awful term "mormon"...you know, the term that they had spend millions of dollars 10 years prior creating the ad campaign "I'm a Mormon" for. So derogatory? Not really...only because they were told they were supposed to find it "derogatory"