Well....is it local people, to whom Kokopelli has meaning and significance, who are making these objects? If so, obviously they know to what use this piece of their culture is being put, and if their co-culturists have no problem with it, then I would see it as part of the culture's evolution. If outsiders have seized on it as something 'cute' and 'ethnic' (in a purely sales-enhancing way), and those whose culture is being used for outsiders' profit, then I'd say there is room for legitimate complaint, if in the opinion of those people, it is being used improperly/disrespectfully.

Just my opinion; I could be wrong.

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It is hard to convey five-dimensional ideas in a language evolved to scream defiance at the monkeys in the next tree. -- The Science of Discworld III: Darwin's Watch, by Terry Pratchett, Ian Stewart & Jack Cohen