"Yankee Doodle went to town
A'riding on a pony
Put a feather in his hat
And called it Macaroni"

It is my understanding that the "Macaroni" referred to in the song was to a group of fancy dressed fops who paraded around London town in the 1770s. The idea of the song was that the Colonists were so stupid they thought a single feather in their hats could entitle them to call themselves members of the "Macaroni" ... Also I understand the song was originally an English song started as a slur on the Colonists (the "Yankee Doddles") but was adopted by the Colonists as a compliment and the slur diffused by their laughing at themselves.
Or am I hopelessly misinformed? Anyone?

PS And what, pray tell, is a Doodle?