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No, you're right ... it's not.
But not everyone tries so hard to create "offence" where it doesn't exist.
The idea that insanity was related to the Lunar cycle went out in the Victorian days. Ergo, the idea that the word "loony" has any connection with genuine psychiatric disorders is a hundred years out of date.
Unless anyone is determined to revive the connection ?????????
In my world, "loony" has no connection with psychiatric disorders. It is a term of disfavour, aimed at people who are completely sane, but have ridiculous ideas.
A person with a psychological disorder ... is medically disadvantaged.
A person who skis down a world cup black run on an icy morning ... is a loony.
A person who says that people who are gay, or who do not worship a divine creator, have no place in society ... is a loony.
Why are people trying so hard to reconnect the word "loony" with people suffering from psycho-medical disorders? It is the people who are trying to revive that connection who are being incorrect. Not me!
Thought for the morning!