To understand much of our language, Gnorts would have to already be aware that our words and symbols gain meaning from how they're used, and you couldn't, for instance, determine that a swastika is offensive (in the west) by its shape alone.
In this case, the term "colored people" gained racist connotations from its history of being used for discrimination and segregation - and avoiding it for that reason is the primary principle at play. There's also the secondary/less universal principle of preferring "person-first language".
they’re not colored, they’re African-American
they’re not African-American, they’re black
they’re not black, they’re Black
they’re not Black, they’re People of Color
they’re not People of Color, they’re BIPOC
I wonder what the next twist of the pretzel will look like
It does not. If we were merely talking about the current young person slang word for something good (e.g. rad, sick, amazeballs, etc. (don't ask me for the current one)) no one cares that the terminology changes.
But in this case each change comes with the same reasoning behind it. This indicates that the change has been ineffective and people ought to consider why that is and if there is something else that could be done instead or in addition to be more effective.