I never considered "kids" to be derogatory. Yes, I have three boys and one stepson. I call them my kids. I've also called them rug slugs, bugs, rotten so and sos, and some stronger language... But part of the culture I grew up in was that being "insulted" was a term of endearment. If we were being super nice that meant someone better duck and cover, if you know what I mean.
I appreciate that as we all have had similar experiences... but perhaps that was the original intent of the term Kids. A derogatory term nonetheless and if we wonder why many young children have low self esteem, maybe this is in part due to our language to each other.