In NYC they pronounce Oregon as “Ore-gone,” even though Oregonians pronounce it “Ore-gun.” In Portland, mispronunciation marks you as an ignorant outsider.
Every place has idiosyncratic misuses of terms that come from somewhere else. Of course you are correct about “Caucasian,” but wherever you are from, I’m sure you misuse some other term.
Labeling it as uneducated and unaware is a form of snobbery that you’re unlikely to be entitled to. None of us are.