Muhammad's name has always been spelled the same in the language in which it matters. But yes, as far as Roman alphabet transcriptions without any special letters or diacritical marks go, there's no beating "Muhammad", so no reason to change it again.

You may want to work on your reading skills, particularly if you're going to be calling people "ignorant" and "stupid". "The offensive content was deliberate and intended that way" doesn't necessarily mean that it was intended to give offensive; it just means that there is a deliberate and intended message, which as it happens offends modern readers. Which makes it different from incidental racism that is contained in a literary work because the work is describing people who happen to be racist - or because the connotations of a word that is used in the work changed.