Sorry, context is everything and audiences just need to understand that. We are different today, yes, but Annie Get Your Gun does not take place today.
True, but a production DOES need to take into consideration how a modern audience will react to the show and if that will have an effect on what that director is hoping the audience will get out of the show. You can’t just say the audience SHOULD understand and leave it at that. A director (and the entire production team and cast) has to consider how certain things might come across to its current audience, even with the knowledge that a show takes place in the past, another country, a different culture, etc. This doesn’t mean an audience should be shielded from anything offensive or different or what have you, but a production does, at least, need to understand how certain elements will be received by its audience and then decide from there whether that reaction will distract from or aid in the director/production’s actual intention.
This doesn’t mean that whatever is in discussion should absolutely be cut or changed, but perhaps it’s a matter of the production making a clear commentary on what is happening or something to that effect. But, to just dismiss the consideration that audiences might react a certain way simply because you don’t believe an audience should is to do a disservice to telling the story or sharing the experience that particular production wants to. If a director decides they WANT their audiences to find that offensive, then that’s fine, but there must be thought paid to it -- what is the point of wanting to tell/share a story with an audience if no thought is paid to how things may actually come off to that particular audience? If something distracts from what a director/production hopes its audience gets from the show, then is it worth ignoring the possible reactions simply because you don’t believe the audience SHOULD react in a certain way?
I remember reading an interview with Kelli O’Hara regarding some of the elements of “The King and I” that could possibly be considered offensive to today’s audience how she said how Sher knew certain things must be treaded carefully how it would be come off to a modern audience, even if the original intention when the show was written was not to offend.