http://en.wikipedia.org/wiki/Holland
Read that.
And they're right.
But people mean they same thing when they mention Holland or The Netherlands --> the country itself.
Dutch is our language alright, but I believe it's the English speaking people that came up with it.
We call it 'nederlands' ('netherlands', seems logical doesn't it?)
Like Germany language is called 'German'.
So for the record of all the assholes that go like this:
-"I'm Dutch!"
"Aaah...you're German!?!"
No dammit. Dutch is NOT the same as Deutsch, which is what the Germans call their own language(Germany->Deutschland. Germans speak "Deutsch")
Pronounciation.
Deutsch: Doitsch
Dutch: Datch
FINALLY see the difference?