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I have this Netherlands thing sussed now (thanks Wikipedia):

Holland is 2 counties within the Netherlands. So what the English language tends to do by confusing the two is the equivalent of calling the UK 'Yorkshire', because it's a large part of it (and the most important/best bit).* Suck it Londoners!

'Dutch' as a nationality is correct, although 'Netherlanders' can also be used.

*White Rose White Rose, White Rose White Rose, White Rose