This has been the case for a while. For better or worse, we no longer use "archaic" terms, instead they've been replaced with more culturally appropriate terms that appear to have identical meanings. Mentally retarded -> mentally challenged/disabled has always kind of baffled me as either can be used as an insult.

Oriental -> East Asian always baffled me too, but not being Asian myself. But I guess it's because we don't call the West the Occidental.

They banned ad banners with attractive people having nice toned bodies in London Tube, too bad you cannot outlaw being attractive in real life :).

You'd enjoy "Harrison Bergeron", a short story by Kurt Vonnegut http://www.tnellen.com/cybereng/harrison.html