So you think they should have gone with the 'wise old Asian' stereotype that the Ancient One is designed from? Because this look would have been just fine...after all, would mean an Asian actor...
Asians are grossly underrepresented in film, but this wouldn't have been a good look either way. There's no way they could have gone with the above look, so they considered going with an Asian female, but that ended up coming off too close to another racist stereotype.
So they chose to go with a woman...who, by the way, also often get shafted in Hollywood (though not nearly to the extent of many other groups).
This isn't like it was a great Asian role being whitewashed...this was the case of the filmmakers trying to step away from a character's rather racist undertones.
Then again, I suppose they could have just
gone in another direction, and noone would have been upset, right?