Uh, it actually is derogatory, but since it's against Whites people ignore it.

As a 20yr resident I will attest Kauai IS NOT more tolerant. Maui and Kauai are completely different. Kauai is just more laid back compared to the townies on Oahu (and Maui). Although Kauai is more NIMBY and more "eh, no can here braddah" than the other major islands.