I've done a bunch of work with folks in Nunavut before, and I find it's a useful distinction given that very fact. Life's pretty different up north and it's a term they use to talk about the rest of us.

(Will say I don't know if it gets as much play in NWT or Yukon).

Edit: According to StatsCan, the line's further down than I thought it'd be, but honestly it still makes sense. Source: map from this release.