Similar story...
My Dad used to wear an Indians Cap with Chief Wahoo front and center. He said he got offers on a monthly basis from Native Americans who wanted to buy the Cap. They all said they loved the logo and what it stood for.
We live in the Pacific NW, where there is a huge Native American population. And he never received one negative comment or had a confrontational incident, having worn that cap hundreds of times. Take it for what it's worth.
As for a proposed name... How about Washington Puppets? I bet that particular domain name wasn't taken, so it should be available. And the only person to take offense might be Pinocchio (who is actually a Marionette, so even he should be ok with it).
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