I'd worry less about offending someone because they had to type it, and more about SEO. I'd stick with things that don't have pictures of gore and destruction on the first page of search results.

So, that's a really good reason to not.

Also, your response was shitty... You specifically state that you chose IED because it's "easy to type"... but when someone says "Hey, that's what we call bombs that insurgents use to kill people with", you reply "Yeah, but the alternative is an acronym used by JP Morgan... People getting offended by me naming something after a way to kill people are being over the top". If "IED" happened to actually mean something, fine, make a case... but it isn't actually easier to type than anything else... If you want that, name it ASD, which shouldn't have any conflicts, as the top google search result is Anchorage School District... and I couldn't find any conflicting package names.

I get it, people are constantly picking on things and suggesting that they need to be more PC... but in this case, there is absolutely NO reason for you to stick with the name IED... and several reasons to change it (SEO, offensiveness, typability).

Also, good news for german companies... The news has started using different acronyms for ISIS... I've seen IS and ISIL in regards to the paris bombings, as they're more true to the literal translation.