I don't think you have the real story Hoo, just some later day revision of History. Years ago every kid in Oregon had to take a course in Oregon History before finishing the eighth grade.
The text books without malice referred to the Indian women as Squaws, Shoshone squaw or Snake squaw in the case of Sacajawea. I do believe it is a revision of history to have villified
the word and the effort has been rejected in many places but as you see, not Oregon.
Here is a little from an historical account about Dr. John McLoughlin with the word use several times. It doesn't appear to me to be degrading the women at all, and nothing like a modern day rapper does.
"Not too much is known of McLoughlin's private life. Already the
father of a son by an Indian squaw, McLoughlin, about 1812, married
in fur-trader fashion the half-breed widow of the hapless Alexander
McKay by whom she had borne four children, and who as a result of
her union with McLoughlin bore an additional four. Personally Dr.
McLoughlin was of striking appearance. He was six feet, four inches
tall; he was rawboned, well proportioned, and strong. His eyes were
piercing; his flowing, prematurely white hair hung down over his mas-
sive shoulders. He was dignified but impetuous, and to use the words "
The rest of the story.
http://archive.org/stream/oldoregoncountry00wintrich/oldoregoncountry00wintrich_djvu.txt