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I think not offending the people who work at Disney is one factor, but the bigger factor is not offending a sizable chunk of their target audience. That being said, I don't see Song of the South disappearing entirely. There are plenty of prints of the movie out there circulating, and the movie...

End of an era: Disney World's Splash Mountain runs dry, as the iconic ride closes for good

Only 23 more years until it enters the public domain! I wonder if there will still be prints floating around at that point? Song of the South is definitely racist, but it's casual Gone With the Wind-style racism, not aggressively virulent Birth of a Nation-style racism. It's also an warm...