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.