People can take political correctness too far. My dad's mother was half indian. None of us are offended by the word indian. And if you look up tribal websites, most tribes call themselves indian tribes. To me it can feel like people are being patronizing. They make me uncomfortable when they stumble all over themselves trying not say indian.
When I was growing up, it didn't seem that black people were offended by being called colored people. After all, what does NAACP stand for? But these days you might offend a black person by calling him or her colored. I read an article by a young woman who went to Africa to trace her roots. She thought she would be welcomed like a long lost child. Instead, she was treated poorly because she was an American. That is when she decided she was no longer going to refer to herself as African American. She said that it took that trip to open her eyes to the fact that she was indeed an American, plain and simple.