I'm a bit surprised by how much people are brushing off complaints about "Cofagrigus," and I really didn't see as many complaints here as I saw people complaining about the potential for complaints.
Yes, I get the puns (although I think they're sort of silly, especially since the "egregious" pun isn't at all clear) and I understand the character limit may be a factor (although this, too, seems sort of silly by 5th gen), but I still think TPCi probably should have noticed there was a problem. If your franchise's target audience is grade-school kids, then you probably shouldn't put a word into one of your product's character names that kids would get in trouble for using at school.
There would be no debate about whether this is a bad choice if there were a racial slur embedded in the name of a new Pokemon. For example, what if Zekrom had been called "Negrom?" C'mon guys, it just means "black," right? It's black and they're called Pokemon Black and White versions! See? PUN! It's CLEVER! Gosh, why are you being so sensitive? /end sarcasm
No, "Cofagrigus" is not a big deal in the larger scheme of things--"Axew," for one, is much more offensive, if only for aesthetic reasons--but you'd still think TPCi would have learned their lesson after similar debacles. It's not "political correctness" or "over-sensitivity" to suggest that this isn't the best idea--it's just common sense from a marketing perspective. What editor was sleeping at his or her desk that day?