The Daily Show did a good job with this. But I think one should be careful with the one-sixteenth Native blood thing–making fun of it for not being “Indian enough” is as bad as making fun of Natives for being “too Indian”. I think it matters more whether one observes, honors, and follows the traditional ways rather than how much Native blood they have.
And as I was reading this, I recalled my own schools’ mascots: One was Abe Lincoln (railsplitters), one was berries (there’s a reason for that, but risk of disclosing the town I grew up in forbids it); the bulldogs; and finally, one school was “warriors”…ironically, or not, it was named after Daniel Webster, and I can’t recall his history, but him fighting the Native Americans comes to mind.
Graham Greene (Dances with Wolves, Thunderheart, Lost in the Barrens) once said (in Thunderheart) that when we were growing up, we played Cowboys and Indians…and he never wanted to be an Indian–he always wanted to be a cowboy.