[pessimizer]

As far as I can tell, it's not offensive, and was never offensive. What can be offensive is using it as a term to refer to the mentally ill, especially in law - and it's really more antiquated than offensive even there. We have more specific and thoughtful terminology for varieties of mental illnesses now, that have nothing to do with the moon.

So if you have a law on the books governing how to treat lunatics, or how lunatics should be treated, it's a dumb old law because there's no official test for lunatic. It would be just as stupid if you had laws about the "wacky" or the "nuts."

The overwrought nature of the concern about seeing the word as the name of a piece of software is just a symptom of the current zeitgeist.