I think the etymology is from "rice burner" cars [0]:
> Riced out is an adjective denigrating a badly customized sports car, "usually with oversized or ill-matched exterior appointments".
Race-inspired to look cool, but not actually functional. Picture putting one of those giant fake air intakes on the hood of your car.
Honest curiosity about language and language use.
In fairness and full disclosure: I have believed until now that the language comes from rice-burners and related, and I have never liked it. If I were still in communities that used it (unix desktop crowd), I might proactively steer newcomers towards your acronym as a kind of reclaiming.
Any negative connotations "rice burner" once had was lost when the term shifted towards referring to cars instead of humans. But now re-recognizing that the enhancements are inspired by the East Asian race turns the connotations back to humans. Isn't that a regression?
Reintroducing this to be something about a population's race reinstates the derogatoriness. You can be derogatory towards humans. Minimizing the cosmetic enhancements to be being inspired by the East Asian race and not valuable human achievement brings us right back to the same place we were when Japanese cars started being introduced into the North American market, diminishing the human contribution. It is a regression.