I agree 100% that it is a racial slur but if they wanted to remain the "red skins" they could just adopt the red skin potato as their logo and move forward.
What's the difference? No one wants to be a potato. But the image of a Native American is one many, hopefully most, people hold with esteem. And that's why you adopt the name and logo because it's something to be revered. So even though it IS a racial slur, I don't believe adopting that name and logo was done with the idea of ridiculing Native Americans.
So I am just posting some comments. I'm not coming to any conclusions. Just something I can't quite wrap my head around.