The real problem with Oriental is more likely its connotations stemming from an earlier era when Europeans viewed the regions east of the Mediterranean as exotic lands full of romance and intrigue, the home of despotic empires and inscrutable customs. At the least these associations can give Oriental a dated feel...
What's wrong with being considered exotic, full of romance, and intrigue? There have been despotic empires and there are still despots and inscrutable customs! I'm not entirely naive enough to believe every Chinese person is Fu Manchu or every Japanese is Nanki-Poo, or every Tibetan is Sam Jaffe. To us, the place
is exotic, just as I'm sure we in the west are exotic to them.
It's delightful to know there are mysteries in the world no matter what culture you're from. Keeps things interesting and all.
Technically, given the International Date Line, these people are in the orient compared to the rest of the world. By old world standards, Europe was the west and now there just happens to be more west than we ever thought there was. The scientific name for the people of the Orient as we understand it, is
Mongoloid just as black people are
Negroid and Caucasians, who may be ivory white or near black as Bangladeshis, are
Caucasoid and I'd never use
mongoloid or negroid, given their derogatory common understanding, among anyone other than a group of ethnologists, or anthropologists.