"Oriental" has been considered out-of-date or offensive since at least my early teens and that's likely only the age that I clued in. But it wasn't that I grew up in an oversensitive progressive community, just the opposite. It's regularly come up in news and entertainment since at least that time.
Like many insensitive language terms or concepts, you can rationalize outside of context like history, how something shouldn't be offensive. But many things (like swastikas) just happened to be tied to negative events, trends, misc for a lot of people. In most cases it comes from a many people using something intentionally to slight people for a long time and not simply a new generation of overly sensitive snowflakes looking for out of date terms.
I'm not overly sensitive and don't get offended or worked up over a lot of "politically incorrect" stuff and I really don't like the trend of young people coopting things like gender or sexuality identity for attention. I think that's the most offensive thing you can do to the actual minority of people dealing with things like that for real.
So although I don't think that many things should be offensive, in most cases it really is no big deal to not say something that affects many people negatively. It's no different than all the ways we've subconciously learned how to avoid being rude, just from living in society. Except that it's something you are concious of.
Like in Eddie Murphy Delirious when he said that racism levels have improved, since people don't call him that word anymore. But maybe they only wait for him to leave the room.