I'm hardly the voice of extreme political correctness, but I think it's really problematic to ridicule this decision. Colonial powers have destroyed and stolen so many aspects of indigenous cultures, and for those of us who do not identify as Native, (and I realize many people on FSU do) laughing at steps being taken to redress colonial theft not only reflects privilege, but trivializes efforts for empowerment.
That being said, I agree that this may not make much a difference in the real world, but who knows? And if it leads a path for more powerful actions in the future, that's great.
Also, this isn't an either/or situation. Other, perhaps more powerful, efforts can and obviously should be made by skating federations to address discrimination, racism, and many other power imbalances at the same time as actions like getting rid of colonial language.
Finally, it doesn't matter whether or not these terms are derogatory. The issue is that they were stolen through a system of colonialism. For example, there's an ongoing discussion in Duluth (large-ish city in MN with a large Native population) about whether to stop using the term "chief" in official titles. Again, I'm skeptical of how much of a difference such a change would make, and I also realize that news about stuff like that really sets off right wing anger about "political correctness," but it's a really complicated subject driven by centuries of really bad shit, and to be totally dismissive or laugh about it doesn't seem appropriate to me.