To my knowledge, Native Americans overall don't have a problem with headdresses and things of that nature when films are depicting Native American culture during the 1800s and other periods throughout history where it is appropriate. What many of them have a problem with are idiots (who are usually white) at football games and other sporting events wearing headdresses, wearing warpaint and beating on drums all in the name of their favorite team. They consider it to be a mockery of their culture and they're right; they're not mascots.
I suppose this film may get a pass for this since it takes place in a fantasy world, but, Tiger Lily is typically portrayed as Native American and it's a shame that they didn't stick with that.