I've always used the term "character", even when referring to cartoon characters. To me, cartoon is the medium in which you may find a character but it is not the character itself. It's no different from calling you character a game, a movie or a book; it'll never make sense to me...

I don't find the term anywhere near as offensive as those who use it for the sole purpose of trying to be offensive however. It's just a word but trolls are so much worse ~_~ Maybe I'm naive but I believe in respecting others unless they earn disrespect and I don't think much earns disrespect more than disrespecting others. Most people are just doing the best they can with what they've got.