Sometimes it is used as a racist slur and sometimes it is not. It depends, but most times when someone says the nword they follow it up with more racism. I dont think they are being racist though, its usually just edgy middle schoolers. It is still used and understood as a racial slur.

I dont think the definition of this word will ever be changed since people will still be using it as a slur, so I also dont think it has moved past race