Durham is far more of an attraction than it was even 10 years ago. With it's current growth trajectory, I'd say Duke gets more than just "tolerating" Durham. People actually WANT to live here now.
As for Durham's view of the school, it's hard for any of us to say since we have a bit of a bias being on the "Duke" side of any line which might exist. Research lead me
https://forums.dukebasketballreport...-tie-to-Durham which seems to indicate usage of the sign did not originate at duke. Regardless of origin, it has become a thing...last time I was at a bulls game, they asked fans to flash the bull sign for a chance to win something or other. Now whether Duke paid for that, who knows...but people associate it with Durham even if it is not ubiquitous.
For better or worse, the gentrification of city means the city has less of a problem with duke.