It's not muslimizing. The apostrophe represents a glottal stop to aid in pronunciation and natives of Hawai'i use it quite frequently as do many other languages in transliteration. That doesn't mean "Hawaii" is less acceptable.
I knew somebody was going to post gobbledygo'ok like this.
I've been around a long time, champ. There are definitely more apostrophes around now than when I was growing up.