Honestly, I was a bit surprised they named it Pioneer Village in the first place, for this exact reason. It might just be because I'm young, but it did seem odd to me considering the "current political circumstances" if you will.
It was established in 1960, some 63 years ago; a very different 'circumstance' then to be sure.
On a further non-political note, I think a name like Black Creek Village, or even just Black Creek sounds a lot better than Pioneer Village. That's just a personal opinion though, and I still think this is going to be a lot of money which could've been used for much better things.
The name as it is/was may not be brilliant, but on the other hand, it's functional, it's not merely a collection of late 18th C, early to mid 19th C homes, it's a 'village' devoted to educating people on what life was like for early settlers to Toronto. No electricity, no source of heat other than fireplaces/wood stoves; no such things as supermarkets, one often made their own butter and such.
It shows you an assemblage, including staff who relate the daily lives of a largely agrarian society, with just nascent urbanism creeping in, such that one might not be expected to have their own cow, and milk would be delivered daily by horse and such.
In other words pioneer life; I suppose it could be called 'settler' village instead, LOL But really, let people be called what they called themselves; relating their struggles and daily life is not an endorsement of all their world views or actions or those of their governments either.