I am apparently quite indecisive.
There is nothing wrong with that- in fact, it's quite laudable. It's not an easy issue. I think that the OP's analysis is accurate regarding the actual problems. I might slightly quibble with a
very limited number of points the OP makes (for example, some of the 'joke-y' names weren't racist slurs, so much as they were a stylistic choice in RPGs at that time used for humous purposes, seen in Paranoia and other "humorous" games, and used extensively throughout the also-terrible, albeit far less racist, Castle Greyhawk that was released at the same time), but I think the overall points are absolutely correct.
But I think we, as a society, are struggling with what to do with past/historical works ... and in a number of ways. And the issues of past media (books, paintings, TV shows, movies, etc.) present very different issues than do present media, or ongoing issues (such as chants at baseball games, or statues).
What do we do if the the problem is the author, but not the content? For example, the majority of Michael Jackson songs (or Jackson 5), or Roman Polanski movies, or the H.P. Lovecraft stories without explicit racism? What do we do if the work itself reflects problematic elements but there is no indication that the author was the problem - such as John Hughes Movies, or Ravenloft, or OA, or GAZ10? Do we draw dividing lines between works that are problematic but are considered historically significant, like Gone with the Wind and Birth of the Nation ... or, in this example, are we more sensitive to the rule books and hardcovers than the supplements (and thus give Deities and Demigods a pass which contains a section of American Indian religion) but look more searchingly at GAZ10?
These aren't easy questions with right answers- and for that reason, I abstain for answering them for others. My view, and this is mine only, is that I encourage people like the OP to ask the questions and provide the analysis, and let people choose to engage at the level they want. But I do not think that these questions are easy- which is why I default to a principle, as opposed to an ad hoc and case-by-case analysis.