You bring up some fantastic points. Thank you!
I understand what you mean about Kraut. It's like the word queer. It can be derogatory or not, depending on the context.
I'm not suggesting that people name their children
Gypsy BECAUSE they discriminate against the
Roma, but because they are oblivious to the discrimination from which the word arises. All they see is a pretty word with a mystical meaning, and don't consider the horrible connotations. I suppose my crusade is against ignorance more than bigotry.