"Saudi" is not just a demonym like "German" or "Chinese" but a specific political program, and even a specific small set of extremely bad people. Fixing that would not make a "free Saudi Arabia of free Saudis" in the way we might imagine a "free Tibet of free Tibetans" but literally a different country not named after their psychopathic kings. It names a regime, not a nationality.

It is not xenophobia to acknowledge it's worse to do something dumb which enriches your ideological and material enemies than to just do something dumb.