That's correct. The term "barbaros" was used to describe any non-Greek people. It didn't have a demeaning nature, at least not the same nature as we understand the term "barbarian" today (unwashed, uncivilized, unsophisticted etc.). The name came from the fact that the Hellenes thought the non-Greeks use the words "bar-bar" a lot, hence it became barbar-os (the masculine form).

Maion