The N Word versus "darky"

I thought it was interesting how on page five of "Home to Harlem" the narrator describes that the N word and "darky" are two very different things. "When a Yankee said 'nigger' he meant hatred for Negroes, whereas when he said 'darky' he meant friendly contempt. He preferred white folks' hatred to their friendly contempt". If I'm understanding correctly, when white people used the N word they were being cruel to a black person's face and not trying to hide their hatred. However, when they used the word "darky" it was as if they were being falsely kind like they were being courteous enough to not call you the N word but they still had to call you something other than your name. But I thought the most interesting part was the last sentence, that he preferred their meanness to their friendly contempt...like he thought it was actually meaner to be called "darky" than "nigger" because at least if a white person went ahead and used the N word then they weren't trying to hide their hatred. What do you think about this passage? And what do you think the narrator means by he/she prefers hatred over friendly contempt?