Oh I've heard it. But it isn't a phrase that people find 'insulting'. There's more of a tendency to roll our eyes at it :p
The concept of Americans believing themselves and their nation to be superior and somehow chosen by God can be insulting - insasmuch as it has been used to justify some fairly shitty stuff - but most empires have their equivalent. We did when we were a 'great power'.
I think most Europeans are more concerned with what the US does, than they are with how Americans refer to themselves. Especially given tat most Europeans also have a fairly inflated sense of their nation's specialness and quite a lot look down on the US as brash and a bit full of its own importance.
but no -
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There's no more insulting phrase to Europeans!
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not even close.