Oikophilia, as opposed to xenophobia, is hardly racism. After all, many cultures do have a general term for other people. The passage of a word over the course of 2k+ years to its current bearers is hardly an indictment of those who first mint it.

In Ancient Greece, the Greeks used the term not only towards those who did not speak Greek and follow classical Greek customs, but also towards Greek populations on the fringe of the Greek world with peculiar dialects.

https://en.m.wikipedia.org/wiki/Barbarian