Years ago, R. Shimon Schwab z"l, wrote against the usage of the term Yekke, saying that it was like a shem genai (derogatory nickname), which Chazal speak strongly against the usage of. On the other hand, I believe that other yotzei Ashkenaz, including gedolim, held that it could be used.
I once spoke to R. Shimon's son, R. M.L.S., נ"י, about this and he said that his father softened his stance later. While he didn't wholeheartedly embrace it, he later adopted an attitude with regard to someone who used it along the lines of אין מוחין בידו. He explained that at one time the term was used in a derogatory sense, but that over the years things had shifted, and today it might be/is used to connotate someone who has within them certain admirable traits, such as scrupulous honesty and punctuality.
Litvak