I agree removing the character entirely seems too far. The characters are designed differently enough that you would be leaving a reasonable number of people without their favorite playstyle entirely without a suitable replacement.
I get people not being able to look past the history, but I'm not sure there's any more reasonable course of action that can be taken. The name was the homage, not the kit, art, or lines. And now that name is gone.
I think those who are still upset about it would have to accept they fall under "Don't like? Don't engage" rather than calling for further action.