It is used to describe rural folk who homesteaded theses states and lived hard lives, in mostly agrarian roles. Cattle driving was one of their main occupations, the "Crack" of the Cattle,not slave whip (rarely did they own slaves, and were as poor as any slave) was from where they got their name. It is said the "crack" could be heard for nearly a mile. The name cracker was synonymous with thier food, architecture, way of making a living as well as the people themselves. Today the word is used to descibe any southern white person, mostly used in derogitory terms, as meaning rural poor country folk by those who could not be considered crackers. The term is not as negative as redneck or hick.
"Cracker cooking consists of gator, swampcabbage and anything one can scrounge up"
"hey cracker, you best not be walking by yourself down that alley"
No one is fuckin better than anyone they are equal, until your actions or reputation lowers your social status and respect, of course.