The character job in question was about as embarrassing and poorly-thought-out an example of cultural appropriation as you can get these days. It doesn't even have the excuse of being called something like "Warrior" and just using a Native style; it's literally named something intended to convey this idea of a magical Indian warrior to an audience that doesn't know anything about indigenous American people beyond offensive 50s-era movie stereotypes. It is, to be blunt, hot garbage.
Now when Nintendo sits down to bring over this game to the US -- the country where the people being stereotyped here actually live, and a country where awareness of how shit these stereotypes are and how widely misused they are has grown dramatically in the last couple decades -- they're stuck looking at the fact that while the rest of the content in the game might be just fine, this costume is going to be offensive (and just disruptive to the experience) for a big part of their audience. And not for any particular reason -- this isn't a major storyline point that might be offensive to some but nonetheless is central to the narrative, or a callback to some external reference that people are expecting to see, it's just the video game equivalent of the Sexy Indian Squaw costumes shitty people wear to Halloween parties.
Given all that, making this choice is a slam dunk. If you keep it, you give actual, real offense to people who are a part of your audience, just to preserve something minor and unimportant in the game; if you get rid of it, the only people you offend are the ones working themselves up into an artificial froth over how any and every localization change is "censorship." The former is a real concern for an actual; business reliant on long term customer dedication for success; the latter is an audience you're better off actively pissing off early on in the hopes that you don't have to hear about it from them every time you do your job.
Also, these statements from the article quoted in the OP are outlandishly foolish:
The former reads like something someone who doesn't actually understand what people are complaining about in these situations trying to imagine how being offended works, and the second one is a bullshit excuse given disingenuously by people who never wanted to include minority characters in the first place.