Taking Huckleberry Finn out of libraries is far, far worse, no doubt. But really a very different case.
As far as I know, there is no legitimate debate about the literary (and historical) merit of Huckleberry Finn. There is near-unanimous agreement that (a) it is one of the greatest, if not the greatest, works of American fiction during the 19th Century, and (b) it was remarkable, especially in the context of its time, for its portrayal of an escaped black slave as a complex, sympathetic character, and for the nuanced relationship between a black man and a young, poor white man. Objections to it are almost entirely based on its frequent use of the “n-word,” which of course was ubiquitous both at the time in which the novel takes place and the time when it was written. Whether any whites understood at either of those times that it could be considered derogatory is open to debate. Some people are also sensitive to the many reminders in the book that whites treated blacks as subordinate and inferior, although one of the central themes of the book is that Jim is neither.
The Merchant of Venice is much tougher. While Shakespeare shows some empathy towards Shylock, as he does towards most of his villains, Shylock is pretty clearly a compendium of 16th Century cliches about Jews, and there’s little or no indication that Shakespeare questioned their validity. But it’s relatively easy simply not to teach The Merchant of Venice and to focus on Shakespeare’s other work, and his status as one of the most significant artists, not only in English, but in the entire Western tradition. (People struggle with Caliban in The Tempest, too . . . and that’s a work that can’t be disregarded so easily.) With Wilder, it’s hard to ignore what’s in her most famous book, although it’s true (as many have mentioned) that the Native American issue is absent in most of her work.
Anyway, no one is talking about taking Wilder out of libraries, or even out of curriculums (because I think she was never in many curriculums). We’re talking about taking her name off a prize. She didn’t endow the prize or anything. It was just named for her because she was (and still is) a popular author of books mainly read by or to children. The people who award the prize can clearly call it anything they want. You can think it’s not a good idea to change the name of the prize, or that it is a good idea, but the consequences either way are not so great.