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In modern usage, it either is associated with New Zealanders of European descent; or a superset of this, New Zealanders that are not Maori. Unfortunately, this does leave considerable scope for confusion as immigration has seen many other ethnic groups arrive in New Zealand, especially in the latter half of the 20th century. Most speakers are able to tell by context which set is being referred to.
Some New Zealanders of European descent will adopt the word to describe themselves, despite the somewhat negative connotations. (However, the phrase "New Zealanders of European descent" is clearly clumsy, and the phrase "white" has unfortunate resonances with the race conflicts seen in the USA and South Africa.)
Pakeha themselves have mixed reactions to the idea of having their own culture, and how they view Maori depends on generation and on personal taste.
Pakeha culture, as such, is often described as Kiwiana[?]. It includes icons that would be familiar to most Pakeha and older New Zealanders - such as the Chesdale Cheese men, and of course the game of Rugby. Essentially, Pakeha and Maori culture come together to make what is traditionally considered New Zealand culture.
wikipedia.org dumped 2003-03-17 with terodump