You are conflating using the actual name of a tribe with a potentially derogatory word. Calling a team "The Miami Spics" or the "New York Wops" or "Minnesotan Whiteys" are a completely different thing.
I must admit, as a non-American, I keep being surprised how bent out of shape you guys get about racism (along with all the myriad other dumb things that blow your minds).
Maybe if we could replace Piers Morgan with a married lesbian black female gun-control supporter from Kenya you'll all go 'pop'! :)
Erm, he obviously has, as he's exactly describing what does happen. He may not have expressed it perfectly, but that's what he was saying he felt like - how the four hobbits would have felt on returning to the wrecked Shire.
Actually, there is unlikely to be any legal trouble here as this model has been operating for 13 years now with the blessings of the original companies, as it has been found that, just as it is legal to reverse-engineer a garage-opening device, it is legal to reverse-engineer a game system. All that the people have to steer clear of is actual intellectual property (so names, etc.). You can't copyright ideas or (roleplaying) processes!
Believe me, if this weren't legal, Hasbro would have banhammered these game copies out of existence ages ago. Instead, it's making their property more valuable, and they are even able to re-release old products for sale as they are suddenly 'relevant' again.
Legal 'copying' and open-source gaming have saved and revitalised the roleplaying industry, a lesson other creative industries should learn.