It's stupid arbitrary nonsense. What kind of pathetic wussy gets offended by names of an object? Who cares what the word's origins are? What does it matter? Let people call things what they are. It's an Easter tradition, so it's an Easter Egg. They're not doing the egg hunt because of Moses or Yahweh or Jahova or Allah or Ra or Anubis or Thor or Poseidon. They're doing it because of Jesus. Because it's Easter. There's no reason people of other religions (or a lack thereof) can't play along. There's no magical force stopping you from enjoying the event just because you don't believe. It's a significant tradition to those who DO believe. And if you are truly respectful of other people's beliefs, then their terminology really shouldn't bother you. Not unless you have something against Jesus, or against an individual's right to freedom of religion. And if so, then no, you shouldn't participate.
How exactly can anyone be offended by free chocolate? Who cares what they are celebrating? A truly open-minded person can celebrate religious holidays even if they aren't believers, if only for the fun of it. That's how you pay respects to other people's beliefs. What you DON'T do is make everybody around you assign different words to things because you get offended by every stupid thing you see and hear. You have no moral right to tell them how to do their own tradition.
I am not Jewish. I once went to a friend's bar mitzvah. I did NOT go around asking people to call it an "Adulthood Ceremony" because that would have made me an asshole. But was I offended that they were celebrating a Jewish thing in the name of their Jewish beliefs? No. I played along and enjoyed myself! Because I am not a massive closed-minded jerk. They didn't ask me to leave just because I'm not Jewish. They were happy to see me. Being inclusive does not mean changing everything so it suits everybody. It means letting everybody play along whether they believe or not.
That being said, if the story isn't actually true, that would be a massive relief. But my statements still apply, as things like this DO happen. (See "Merry Christmas".)