You can't expect older southern women to get that the term "lady vols" is antiquated--smacks of the early days of women's sports when they were a novelty act ("Oh, look: ladies trying to play basketball!")-- and betrays the equality that most women want and deserve.
I'm in my late 30s, so I don't think the term "older" really applies to me, unless maybe you're 12. And, while I might be southern by birth, I spent about ten years of my life, from the time I was 18 until my late 20s, in both Boston and New York, and I assure you, I fit in very well in both places. It isn't about the term being antiquated. Lady Vols is a brand that is synonymous with perhaps THE most nationally recognizable and continuously lauded sport at UT (women's basketball). I would likely agree with you in most cases, at most universities, if a sudden decision was made to place "Lady" in front of the team name for women's sports, but not at UT. It isn't about being outdated or antiquated. At UT, Lady Vols is a brand that, to be quite honest, represents more continued success than anything the men's teams have to show by a long shot; it does not in any way connote antipathy toward or degradation of women or the women's teams at UT. More importantly, if the athletes who represent(ed) the brand wish for it to remain in place, it should.