Not everything new is bad.
As you mentioned, Kyhv means mountain in Ute, which is cool and a better name than naming it after the name for "wife"---even if it weren't derogatory. But since it IS derogatory, even more reason to change it. And it's unique. I like it better anyway, we just have to get used to it.
Would it be appropriate to name something "N----" mountain (slur against blacks)? Nah, it wouldn't be. It's ok to rename things if they are offensive slurs.