This isn't actually how french works either, or any of those languages that have official academies. Those should probably be viewed mostly as vestigial tools of state formation left over from the bootstrapping-nationstates era of european history. Or cultural relics from before linguistics had its current understanding of how languages form and change. They are many things but ultimately they're not the ones that decide what words should be used or what they mean.
> But it is not a moral issue
It's not a dire one by any means, I wouldn't argue for consequences for failing to meet it. But I do think we have a light moral responsibility to refer to people and groups of people by the names they ask us to use when referring to them. A lot of "new" names for cities and countries are because the "old" name was chosen without consideration or consultation with the people who live there. We're now much more easily able to have those consultations, so we should, and they should inform the names we use.