The term "expat" makes me cringe, as it has connotations of not adjusting at all to the local culture, but living in a bubble of Britishness (imported Heinz beans, refusing to learn the local language, big satellite dish beaming in British soap operas etc.) I guess it does all stem from thoughts of colonialism.
I agree the term "expat" has this connotation, but I also think it's becoming much more general, or encompassing vaguer, more fluid meanings as well. I don't personally think of the word "expat" in the pejorative manner as described above. I belong to several "expat" groups, which use all kinds of labels (expats, internationals, etc) and although I usually don't use the word to label myself, I guess I don't use any another synonym as well - perhaps foreigner or foreign whatever?
I also think expat groups can also vary a lot in how "expatty" they are or how much of that 5 meter thick cultural fortress wall they raise around themselves...
A lot of expats I meet wanted very much to go abroad exactly to have a new life experience and to discover a new country and culture and they are certainly not just into being bubbled up in their little expatty groups. On the other hand, certain profiles, like wives of corporate upper management expats, that's usually a different story...
As I had to listen to recently, one such woman was going on and on about how absolutely difficult it was to have moved with her globe-trotter high-exec hubby to Paris because... she couldn't find someone to play golf with. And this is her main occupation during the day...