The Karate Kid...practices Kung-fu. WTF?

This post is a little off-topic, and for that, I apologize:
So I was surfing the website for the Bobby Bones Show, an Austin-based morning show that I listen to fairly religiously each morning as I sleep-drive my way to work at 0515 every morning, and I saw that he posted a link to a trailer for what is either a re-make or reboot of the Karate Kid franchise.

Sidebar: I freakin' love the Bobby Bones show, mostly because its personalities are all late-twenty-somethings (i.e., my age), and they are able to make me laugh -- an increasingly difficult task to accomplish these days.

As Mr. Bones rather astutely notes, it stars Will Smith's kid, and Jackie Chan (who I guess is filling the Mr. Miyagi role as coach/teacher/mentor?)

One thing bothered me, though: if the kid is going off to China to study kung-fu (a Chinese martial arts discipline), then why in the name of f*** is this thing called "The Karate Kid".  Should it not be "The Kung-fu Kid"?  Additionally, since I no longer have an MLA guide to writing, can someone tell me if I'm supposed to italicize movie titles, or stick 'em in quotes?  Or are they one of those grey-area things where both are acceptable, so long as you remain consistent...?

Am I the only one bothered by this?  Does anyone else see the ignorance in this misnomer for a movie title?  At least Jackie Chan (maybe) gets an opportunity to be an actor, and not an empty vessel exploited for a cheap laugh (usually at his own expense).  C'mon Jackie: do the Asian American community a favor and stop with the jokes whose punchline is your inability to speak English.  You're better than that, and quite frankly, the racial slapstick is kind of old and passé.