At Lawyers,guns, and Money, djw and commentators discuss the choice of "Bombay" or "Mumbai" as a name, with some reference to some things I wrote about it some time ago. I still do say "Bombay," for the reasons I describe in the passage quoted in djw's post. As John says in the comment thread, "I'd rather side with Rushdie than with Shiv Sena."
But as a usage matter, "Mumbai" has stuck, and now has almost ten more years in use than it had had when I wrote Multiculturalism of Fear. I think I correctly described what happened then, and that the general point I was using the case to illustrate is right, but I do also recognize that in linguistic matters, eventually "long usage is a law sufficient." I'm not sure at what point my resistance to Shiv Sena becomes the cranky old Bircher in the corner saying "Peking" or Grandpa Simpson refusing to recognize Missourah.
I've got nothing else new to add, though of course I was pleased that djw found my discussion of the case useful.