Honestly the term "ole miss" is really great for them. Without this term the dont have nearly as much identity, it carries weight with/for them. I know exactly what you are saying, it is an extremely racial term, but they have done an incredible job of sweeping that under the rug (even when it gets national media traction) and its the reason why they have fought so hard to not get rid of it. It is their identity. They remove the term ole miss and they lose their legitimacy within 5-10 years.
If you’re ever traveling anywhere outside the southeast (and even inside the southeast), and you ever tell anyone you went to Mississippi State, 95% of the time you are going to get the same respnse: “Oh yeah, Ole Miss, right?”. One time I even had an older guy in Sanford Stadium at UGA try to tell me how much he loved Oxford as some kind of “consolation” after a loss.
Bottom line is that no one nationally has ever heard of Mississippi State or the University of Mississippi. They only know Ole Miss. They’ve kicked our *** quite badly with their branding and the simplicity of their shorthand name, as racist as it may be. And even if they wanted to get rid of it, they couldn’t. Imagine if Alabama had the word “Bama” on their helmet and then were like “No, no, no, we’re ALA-bama, now…..getting rid of that nickname!” Would that really work?