Russell Means, an Ogalala Souix and a prominent Indian activist in the 1960s and -70s apparently had not problem with it. In 1968, he joined AIM, the American Indian Movement. It was kind of hilarious, too, in that i went to Wikipedia to get the right dates, and they describe him as a Native American activist. We're all Native Americans (those of us born in North America).
It can get seriously carried away. The University of North Dakota faced NCAA sanctions if they didn't change the name of their sports teams, which had been called the Fighting Souix. The NCAA recognizes the right of a handful of teams to use such names, if they are approved by the group so referred to. The Spirit Lake Souix band approved the use of Fighting Souix, but that apparently wasn't good enough for the NCAA when an Souix activist from South
Dakota complained. The state had passed a law requiring the university to use the name Fighting Souix last year, but in the face of the NCAA sanctions, and the NCAA's refusal to accept the Spirit Lake band's approval of the name, voters in a referendum allowed the university to drop the name.
This is taking offense on behalf of others carried to a rediculous extreme. One spokesman for the Spirit Lake band would not speak to the press, his wife saying he was heartbroken about the incident.
I agree with you about the Redskins--there's probably many thousands of people, at least, who are offended by the name. But the North Dakota incident is an example of the concept being taken too far.