Answer:
True Gypsies, such as Romany Gypsies, are not in the least offended.
However, as with many words, it is the use and connotations that lend offence.
In addition there is the growth of the 'politically correct' faction that feel their opinions should override everyone else.
Though language is dynamic to a certain extent, and words do take on different meanings, it remains the way in which the word is intended that is the largest factor in their use.
Yes, but only some leaders of the Gypsies community (and stupid clerks of the very stupid European Union) was offended. Etymologically and historically this attitude is not normal. The Romanian word is ţigan - probably of Greek origin. All the Romanians and many Ţigans consider the term Rrom (for Gypsy) ridiculous and as an offence for the Romanian people.