Actually, that name too is proving to be untenable, and change is happening (English article):
https://www.jpost.com/diaspora/jew-cookies-a-dutch-dessert-s...
It is not really offensive, mostly, but also not a good match for the present day. Manufacturers probably won't hold on to the name for much longer.
Not sure if "jew cakes" are racist but they sure aren't Israeli!