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I've never heard it used as an ethnic slur. But then, I've never lived where there are Romani people. I've only heard it used to refer to a sort of romanticized image, from movies or something - a traveling outdoorsy person who wears handmade jewelry and flowy colorful clothes, who is clever and mysterious and will tell your fortune, but not be around long enough to be known well. To me, as a name, it sounds sort of American folksy-flakey circa 1975, like Calypso or Pepsi or Cheyenne or Sparkle or Spring or Windy or Gemini or Pebbles or Banjo.

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- mirfak