That sounds derogatory to me. His opinion is that business types could care less about what you do. You're not a programmer but an exploitable resource. Since when is being a crafts-person and being proud of your work and what you do bad?
I get that you're proud of your development skills, but at some point your software has to solve a business need, and you need to understand what the need is and how your software is solving it.
I'm in the business of producing good software. How does calling myself a programmer have anything to do with what you just said?
It's a matter of perception. Patrick thinks people think programmers are clueless navel-gazing cogs who don't have a grip on reality. Of course nothing could be further from the truth -- a good programmer is probably more in touch with the needs of the business than the ignorant stakeholder who thinks programmers just type in a bunch of stuff. I think this perception is a disservice to both programmers and business people alike. I do not doubt that there are people in the world who perceive programmers in the way Patrick describes... but I wouldn't work for them for anything less than a big six-figure salary and very gracious vacation allowance. I think most people understand that programmers make software and software solves problems for businesses and consumers which makes money. Therefore programmers must be pretty important.
So yes, I still call myself a programmer. If I catch wind that the person interviewing me views me as a 'peon' I walk. If that's what they're looking for it's their loss. They can figure it out later I'm sure and might come back to me when their spending 80% of their time and budget fixing the errors their "peon" introduced into their software.
Good programmers are hard to find. I don't see anything wrong with calling myself a programmer.