I said it about 10+ years ago to a girl of Chinese decent, she looked at me like I called her the n word. I hadn't said it in a million years because it never came up. I had no idea it had been put on the black list...
That's typically how I refer to myself anyway, since people get confused about Taiwan in general.
I'm half Taiwanese, and think we should just categorize ourselves as "Pacific Islanders". That should rid any confusion.
Seriously, though. I haven't found "Oriental" offensive either.
It's all about the manner in which it was delivered.