I can definitely see how it could be used to steamroll over objections, but I don't think that's a problem with the term so much as who/how it's being used. Having a simple term in a team's shared vocabulary to point out when excessive effort is being used on something trivial is important, because it can prevent a lot of time from being wasted.

Here's an actual example from recently: “Hey, I think this parameter [that we can't decide if it should be a boolean or an enum] is turning into a bikeshed.” “Good point, leave it as a boolean for the moment and we can always refactor later.” Something like that is not going to make or break a project, and being able to concisely point that out is useful.