It's a subject fraught with risks, but I don't think Pullman's solution advances anything, it just supplies substitute terminology for the same constructs and in a way, by being so obtrusive, just brings more attention to those constructs by making a big thing of it. But I don't think we want to go back to many "once accepted" terms, be it regarding race or medical conditions and birth defects. Even if they were once commonly used, I don't think we'd want to refer to people as Mongoloids, spastics, cretins, imbeciles, etc.
One thing that has always bothered me was the need for some writers to describe the relative skin tone of African Americans when it really does nothing to advance the narrative, things like, "He was a handsome man with a cafe au lait complexion." (Not a real example, but I've seen lots of similar descriptions).