It's the right thing to do.

Why did they not adopt "Huskies" as the team name upon re-entering the league in 1995?
A Canada-wide "Name Game" competition was held and ten names made the final list - the 'Beavers', the 'Bobcats', the 'Dragons', the 'Grizzlies', the 'Hogs', the 'Scorpions', the 'T-Rex', the 'Tarantulas', the 'Terriers' and the eventual winner, the 'Raptors'. The contest is a nice egalitarian thing to do, but in reality these generally just follow the trends of the day. We ended up with a mix of Barney and other jurassics; even the kool-aid guy should be angry about that one.
Some watered-down contest isn't going to cut it; there wasn't a need to have one in the first place. Names are important. Teams should reflect the community they are a part of, reflect the geographical location of the city; and highlight the rich history of basketball in Toronto. As far as we know, Toronto isn't a paleontology capital. Hogs? Scorpions? Please. "Towers", maybe.
"Huskies" is the name.

There was an earlier precedence for changing names, so it can be changed back to the original just as easily. The Buffalo Braves/San Diego Clippers; Syracuse Nationals/Philadelphia 76ers; and more recently Washington Bullets/Washington Wizards (who were actually originally the Chicago Packers).
There are many recent examples in the NBA of teams keeping their names intact following moves, for example: Grizzlies, Jazz, and Lakers. This strategy has produced some interesting combinations.
This Toronto team has to transform into the mighty Huskies. The current team has tremendous potential and can win championships; but it can't get there under the current name. Huskies are proud, fierce, powerful, tireless, beasts that work in teams, and Huskies didn't go extinct.