The problem with changing whitelist to "allowlist" is that it implies that people who use whitelist are racists. You're not just virtue signaling (and confusing my spellchecker) but causing discord.
It would be perfectly fine if people switched to "allowlist" because they think it's a better term, but that's not the reason. They do it because they want to virtue signal or they're afraid of their peers (because they'll be called racists).
Using "allowlist" is actually bad because it gives agitators power and they keep changing more words to get more power.
The reasons that they usually actually have are not very good though, like you say, but nevertheless sometimes it can result in something better and sometimes not. But, banning words is not the solution, though.