I do not see the problem with the term Pagan.
My view:
For one, people tend to forget that names are not something people give to themselves, but mostly receive from others. If you look at the original meaning of names created by people themselves, then the name for a people often originally meant: "the people" .
It is foreigners/outsiders who often create names to distinguish peoples from others or their own. That is even so with first names and surnames. Parents give a name to children and often they were given the names of ancestors, which is in fact a very important spiritual practice of which the meaning is greatly lost. Surnames often mean something like son of x (John-son, Mac-Donald, O-reilly, Janis-kova), or coming from there (Wastington, Von Brandenburg). Often they are descriptions given by others (Short, Long, Keen, etc). So I think it is rather futile for Pagans to insist to create a new name of their own for "Pagans".
More important "Pagan" is not a name for a group with a common identity, it is simply an English container label, a category name. Nothing more an nothing less. It is only a category word for all the various Nature based religions before the Abrahamist brainwash. Pagan is rather a good descriptive word as these religions kept on being practiced on the countryside for centuries and it reflects the strong connection with Nature.
The word "Pagan" is no more specific than cars, peoples, countries etc. It is really a waste of time to start discussing on this. Nor do I feel it as negative. Maybe it was in ancient days to city-dwellers. If people in urban areas want to look down on country dwellers I have no problem with that. You can not change that anyway. Let them have highly philosophical book religions and theorize about that. I am not envious of that.