My aunt used to teach a young man from a religious family with the same surname. They called him Isaac.
Should Cilla Black change her surname? Oh and my friend has an uncle Paki (pet name for Patrick in Ireland)
Welcome to our lovely multi-cultural society :)
It's all about context, as has already been demonstrated:
A word in itself, and here I mean any word, is not offensive but the intentions can be. The word "murzyn" for me is a neutral word, however it can be used as a derogatory word if the person who uses it will have the intentions to offend.