I like Orange Bird and fondly remember him at WDW from my first visit in 1972, where I drank the juice in the orange sipper shown above. I see no harm in the character as it has no culpability in the Anita Bryant mess whatsoever -- she can shoulder her own guilt.
I don't really buy much merch, but I did buy an Orange Bird antenna topper years back for my mom, who always loved Orange Bird. She always loved how it helped her find her car in parking lots.