Um, as far as I know, "Japanimation" is a concatenation of "Japan" and
"animation", not "Jap" and "animation". I've never met anyone who
considered the term "Japanimation" derogatory.

  I have...the japanese animators themselves.  Many of them feel that the
term 'japanamation' is a poor American amalgam for something that they
feel helps distinguish them.  By calling it 'japanimation' they are
thought of as Japanese first and animators second.  But they prefer to
think of themselves as animators first and foremost, and what they do is
something to be shared with everyone, and labeled not as the sole property
of Japan.
  Second point, the japanese refer to it as 'anime', why not us, too?  Why
do we have to create a specific american label for it?
  Last point, 'anime' just sounds better.