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After hearing Palmer Luckey's argument for the name change[0], I tend to think it's good change.
Some of his arguments:
It used to be called the department of war, and it had a better track record with regard to foreign conflict, under that name then it did under the DoD name.
Department of war is a more honest name, department of defense is a somewhat newspeak term, although "Department of Peace" would be worse.
It's harder to seek funding for "war", then it is to seek funding for "defense". If you ask someone, "Do you want to spend money on education or war?", you will get a different answer asking, "Do you want to spend money on education or defense?".
[0] Palmer Luckey talking to Mike Rowe about the name change: https://youtu.be/dejWbn_-gUQ?t=1007
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