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I was also a bit put off that Delta thinks that, as an American, you are going to get upset or distressed if they call it a Puke Bag. Or Vomit Bag. Or even just an Air Sickness Bag. They call it a Motion Discomfort Bag.
But Delta realizes that people from other countries aren't offended easily and would probably be confused if they tried to make the bag into something more pleasant than what it is. Here's the translations for the other countries:
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The bag has two sides and those clever Marketing folks over at Delta thought you could use the bag to save your seat so they printed Occupied on the bag.
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Me? I kill two birds with one stone and puke in my seat. That way nobody is going to take my seat and I don't have to own up to being a little girl.