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My dad said the term GDI was used in World War II, back when he was in college. I've always felt that the term could be used several ways, depending on how the speaker or GDI wanted to use it.
At my colleges in the seventies, it was mostly used humorously and affectionately, as Deltalum and dekeguy described. It was just a way for someone to say that they weren't Greek.
Occasionally, it would be used as an insult from the Greeks ("Those GDIs from the coed dorm just lobbed an M-80 into our living room!) or at other times, an insult towards the Greeks, usually from the hippies ("I'm proud to be a GDI who doesn't listen to the Establishment!")
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