This isn't quite an accurate reading of the situation, and a closer look at the thread you linked provides a more complete picture.
In the initial patch notes post, the devs only stated that they gave themselves the ability to change realm names at their discretion and changed "Player Population" to Balders Bra because, to quote jorb,
jorb wrote:Take shots at the game, get blown out.
Jorb even expressed that he was unconcerned with changing the name of "that other realm"; only later was "White Pride" shortened to "Pride" and unlike Balders Bra this was
at the request of the realm's owner. The OP was edited to reflect the name change but changing Pride was not the devs' choice.
jorb wrote:By request from the Ruler of the Realm, however, the realm formerly known as "White Pride" is now known as "Pride". Updated OP.
I clarify because this isn't at all a case of devs policing that which might be construed as racism/hate speech and is instead a case of the devs willfully letting it slide. I can't remember the last time devs actually took action to remove something like this.