I personally find it worse, if city names are very different. Like Krung Thep Maha Nakhon (...) as Bangkok. Most Thai people just say Krung Thep, why can't the rest of the world? I mean, they only changed the name in 1782...
Or Italians call Munich 'Monaco' which is really confusing because there is literally a country not that far away.
But you must admit, that for English speaker not only the Ü , but also the CH are really big challenges. I feel like they done their best with Munich here.
But anyways, I would be in favor of changing it for the original upper bavarian "MINGA"
The first record mentioning Munic says that it’s called “forum apud Munichen” (1158). So “Munich” is just a case where an old world survived the centuries in exile, while the people living nearby changed it around.
Both have the same ‚distance‘ to Munichen albeit changing differently. The English pronunciation is an abomination though. Moon-Jen would be preferable from my POV.