Or is that a "recent cultural trend" where you can understand why publishers followed the trend and made a change?
Because once someone admits that change was okay, it's no longer a question of principles and just a series of judgment calls that different people will make differently.
Publishers make changes to ensure books keep selling.
They are human and don't always make the right decision. But they aren't doing it for any reason other than profit.
My daughters are Asian I wouldn't buy them a children's book where "be Chinese" is considered an acceptable Halloween costume.
The publishers would probably prefer I consider purchasing it.