Then it isn't offensive, but is still odd. How often is it that a country's name gets properly translated into English (i.e. Nippon, Japan; Italy, Italia; etc.)?
Actually if it was correct translation of the Thai name, it would be "Land of Freedom", not "Thailand". The Thai name of the country is "Prathet Thai". Prathet means country, Thai means free. The country's name was officially changed to "Prathet Thai", or Thailand, in 1949 to reflect its status as the only country in SEA that was never colonized.