Politically Correct?

Nathan's school has a Thanksgiving Feast next Thursday morning. I copied this quote from one Kindergarten teacher's website:

The children will be served “Native American Pancakes” for the Thanksgiving feast made with a pancake for the face, a strip of bacon for a headband, apples for feathers, raisins for eyes, a cherry nose, gel icing for the mouth and war paint."

I just think it is funny that they say "Native American" instead of "Indian" to be PC about the whole thing. But really, how respectful is it to represent a culture by making a pancake face (complete with a cherry nose and bacon headdress) and eat it for breakfast?