Anti-Racism Day was yesterday, did you remember?

I think we are becoming over sensitive to our approach of race sometimes. I know I am, and I think my generation is tiptoeing around the subject too much. Today I was talking with a friend (who is Asian, not that it really matters) and he was describing someone as white. A look of panic flashed in his eyes as he took it back quickly and replaced it with the more politically correct caucasian. I was stunned at first but made fun of him for hurting my people. It was weird that he had changed his words, I didn't really think it was necessary.

Are we at the point where we can't even say white, black or brown? Why does it need to be replaced with formal politically correct words? Why so many rules? How is that a description of skin colour became a derogatory term?