I think the Skynyrd-Young feud is one of the most misinterpreted in music.
Young and the Skynyrd boys made no secret of their mutual admiration but your larger point is correct. Skynyrd wasn't siding with the rednecks, they were saying not all Southerners are rednecks. Young thought the lyrics were "cool".
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"I didn't come here to take part. I came here to take over."