That's a good one. There's a line somewhere, but it's probably hard to tell why. That's quite an adventure.
Imagine Mr. Popo from OG Dragon Ball. You know, the guy that was literally repainted purple in vain attempts to make him less racist. If WoW added a black Kul Tiran monk named, idk, Sir Bobo, would that be a problem? A homage to a cool character that had an unfortunate misfortune of looking like the most racist thing ever? I'd say the homage would be fine if it was about the things that made Mr Popo distinct and cool - black powerful martial artist, but adding big red lips and his, well, peculiar manner of speech would be going over the line.
Same with Finkle. The guy only shares the name with the "problematic" character, it's more of a homage to the classic movie itself. Finkle doesn't even have anything to do with crossdressing and gay jokes. Leave him out of this, I'd say, let him keep his name.