I believe the problem is that everyone has come to associate "goblins" with a very derogatory and stereotypical view of them as dirty, nasty, vicious, cowardly little creatures with no sense of decency or restraint. As such, if we are to give them the second chance they so desperately need, we'll need to also give them a new name. I propose that henceforth, these beings be known instead as "hill kittens". Everybody loves kittens!
Edit: Ref.
www.peta.org/sea_kittens/ I'm determined to keep this joke alive in people's heads until someone accidentally uses it IC. Plus, mocking PETA is worthwhile all by itself.