if a player sees an "offensive" name, they are free to report it ingame using the CONTACT US link. be sure to give adequate information regarding server, etc. for a city name or flag, coordinates may be helpful for verification.
ultimately it is up to the game administrators/developers to determine whether they will allow/disallow the name in question. all we need to do is voice our concern.
feel free to discuss it here in the forum, but I don't feel much discussion is necessary. often it becomes an unproductive debate of personal values and beliefs.
my opinion is report it and move on. have fun.
