How is 'Latin' offensive?
There is a loud minority within the Latin group who wants the term so they can feel powerful, and of course, the squeaky wheel gets the grease.
In the end, all society is accomplishing is rewarding outrage.
We won't be renaming "Latin America" either, so latin/latino is just that, inhabitant of latin america - or from a place "predominantly speaking a latin-derived language". Note that Latinx has the same exact root anyway - and iirc it was never about the concerns above, just a BS misunderstanding of gendered nouns in other languages (because latino being "male" somehow excluded others).
In any case, it should up to the populations to decide if they wanted another term not "white saviours" and a number of privileged activists in a totally different country.
And if the locals themselves wanted to correct a historical injustice, instead of playing with words, they can give rights to indigenous people, stop killing them and taking their land, or they could even move out of Latin America and back into Europe all together...