Excuse me but what is wrong with the word keling being in Kamus Dewan? We have been using the word for plenty of generations. Although the reasons we use the word may differ from what it was used for then i suspect it is not as degrading than someone calling you with profanity.
From my understanding of the word, it actually originates from a place called Kalingka. Sometimes society tend to be over sensitive and the tradition of name calling obviously doesn't inspire confidence. But the Keling is a word and for the fact that it is a propper word there should be an entry on it in the dictionary. It is just for understanding and education purposes. So what is the big deal with a court case and all lah?