The name and art for Pradesh Gypsies wasn't the problem. The card text was the issue -- it had an ability which could temporarily reduce the strength of an opponent's card, invoking the stereotype of a thieving gypsy.
You're right, that's a fair point. I wouldn't be surprised if WotC had avoided "Romani" because it felt like a demonym which wouldn't exist in their universe. :/
Are there any great substitute terms which focus on the lifestyle commonly associated with the Romani? "Nomadic" (or "nomads") is associated more with peoples who live away from civilization; "travelers" is a little weak, as it can imply a temporary activity.
That modifier might as well come from outwitting or befuddling, particularly with a text that evokes mystery.
Sounds to me like this choice says more about the actual prejudices of whoever made it, rather than objective parameters.