Do Americans mind

Most young people think it's a reference to masturbation.

In my experience, only when it's used with genuine hostility. And in those cases, it's the hostility behind the word that's being objected to rather than the word itself. The word itself is just a bit quaint, isn't it? It's not like it comes with a history of oppression or anything.

Imagine being called a limey or a pom. Do you care? Probably not. It's mostly like that. Banter. Sometimes even affectionate banter. All about the context, really.

Not at all that I'm aware of and I'm a life long 'Yank.'

It seems like a quaint term that Europeans apply to us, it doesn't seem to bother anyone around here at all.

I have a mild to moderate dislike for the term, though I do agree that context and delivery tone play a part.

I see it similar to when somebody uses the pronoun "you people" when speaking to somebody.

I do know that South Americans do not like "USA Americans" monopolizing the term. They consider themselves to be "Americans" also. (I don't know if this extends to Central America and the Caribbean.) They refer to USA Americans as "Norte Americanos" and, pejoratively, "Janquis" (Yankees.) I don't know their opinions about Canadians...

SOUTHERNERS HAVE AN ISSUE WITH IT MORE THAN ANYONE ELSE.