My Grandfather grew up in a different time, and used words that many now would consider racist, even though he did not mean it that way. He did not have a racist bone in his body, but if he was interviewed today on TV or radio, his use of those words would get him labeled as a racist. He did not know any better, they were what he was taught. I, on the other hand, know that some groups would consider these words to be ethnic or racist slurs, and since I do not wish to denigrate these people, I avoid the use of these words. My grandfather would argue that there is no need for him to change, since he means no harm, but as things in life change, so should we.
The battle over the name is stupid, but to drag these things out for years is even dumber. Using a living people as a mascot, without their permission, is probably going to lead to trouble sometime, for whatever reason some axe grinder wants to bring up.