I think something important people aren't talking about here is NCSoft. Regardless of where one falls on this topic, I'd bet money that stuff like this is something NCSoft wouldn't want to deal with, especially for something that won't directly bring in revenue. Best case a deal with HC is a loss leader for them, so adding in potential controversies (big or small) is not something that is going to make them more likely to do a deal.
I'm not saying it's fair or unfair, right or wrong, only something that needs to be considered.
Personally I think the way the HC team handled this is fantastic. First and foremost, it gives me additional confidence in their leadership and ability to navigate touchy subjects. I wasn't doubting them before, but I was absolutely watching this to see how they respond. Because it matters. And if there is some NCSoft rep keeping an eye on things here, I suspect that person will come to a similar conclusion, whether or not they have a personal issue with the initial name.