The term has always been somewhat tongue in cheek, in part because it goes against the principles of PCMR to actually be elitist about liking PC. But also because it's a lightly mocking response to outside claims of superiority over PC that were rampant in the past (usually while lacking objective reasons for said superiority).

In my opinion, the term has grandfathered in to such a degree that it's relation to how Nazis used the word is kind of disingenuous to attach to PCMR at this point, since it's obvious the two uses aren't the same.

I also don't really blame the fact the name was kept, because that's what people migrating will be looking for. If they can't find it easily, someone else is just going to make it and the community will split. Who knows though, if people agree, maybe Lemmy will provide an option to rename the community - once it's grown large enough or something.