The fact that some rock band that no one has heard of used a stereotypical expression in a song no one remembers means nothingLOL! Apparently it does, I have never heard the expression in any other context except Lowell George's, and Im approaching 40. This article is a "lets see what I can find to offend me today so I can be outraged" effort. Im just surprised to see so many falling for it..
I'm just a little older than you and I never heard of the song. I think the whole tempest in a teapot has to do with the fact that a leftist can get away with saying something that is blatantly racially-charged, while if a conservative even said something innocent, the worst spin would be put on it.
If an older person says a certain expression is offensive, take his word for it. He might have witnessed things that you might find hard to imagine.