dangerously close

The Mayor: Those Indian American natives are not gonna be happy.

Mike: Well, the good news is, sir, you're dangerously close to being politically correct.

Source: Spin City 219

Background: The mayor had finally stopped referring American native as Indian, which was a good news to Mike, deputy mayor, as they were about to meet those people.

Can "dangerously close" really be used in positive contexts, as shown in the example?
Is this expression ,often perceived in a negative light, used sacrastically?

I would read it as sarcastic. He still said "Indian American natives" when the acceptable words would be "Native Americans".

Andygc said:

I would read it as sarcastic. He still said "Indian American natives" when the acceptable words would be "Native Americans".

It might be better to say "the politically correct term would be 'Native Americans'."

Indian is not acceptable, and is used both officially by the US government (such as by the Bureau of Indian Affairs) and by the people themselves who are so described (for example, consider the organization called the American Indian Movement, or this article from the Native News Network, "Navajo Code Talkers Make American Indians Proud".)