I don't think it's the term "indian" that's being objected to, but rather the cartoon image of Chief Wahoo. Although I think you'll find "indians" only use the term amongst themselves and prefer others only to use it in conjunction with a tribe, as in Cree Indian.

And no, you'll find FN in Canada and the USA object to Redskins, Braves, Squaws and other derogatory names. And, yes, Indians is not appreciated by most FN people if used improperly.