I tend to agree, and there are certainly others who do too. There are others who use it in historical contexts, and still others who still consider themselves part of that group.
As I understand it, the usage of the title was applied by Europeans to those 5 specific tribes, but the title was later used by them to try to curry favor in dealings with the US government. The Five Tribes were considered “civilized” because they adopted things like Christianity, a centralized government, could read and write in English, etc. Certainly, they had assimilated many things from the European culture, and hoped such branding would lead to favorable treaties that were honored and be able to keep their sovereignty. Spoiler alert, no matter how well one played ball, they all got stabbed in the back in the end. 
I find it very ironic one of the marks of being “civilized” was the practice of chattel slavery. There is still reverberations to this day from it, with the decedents of Freedmen from the Five Tribes still fighting for tribal membership.
So, yeah, I am not sure if that is how it is officially referred to on the State Seal of Oklahoma still or not? I imagine it is. Absolutely the term is archaic and insulting in the first place.
In cases like this I defer to what ever the leadership of the tribes involved think is best. I am not sure if there is a movement to get that changed or not.