If you want to make a point you should include the other assumption as well:
Integrate[Sin[n x]^2, {x, 0, 2 Pi}, Assumptions -> n > 0 \[And] n \[Element] Integers]
And yes, I agree, for this case it could be more simplified. However, Integrate does not promise you to give the easiest possible outcome, it gives you the right result (which it does!), maybe not the simplest result. FullSimplify/Refine on the other hand (kinda) does promise you to give the simplest possible expression (which it does!), as per @Marco Thiel's answer.
So this is all correct and expected outcome. The result is ok but could be simplified. As also described in the documentation of Integrate (under possible issues)
> Specifying integer assumptions may not give a simpler result:
with nearly the same example as the OP. They propose to use refine, rather than FullSimplify, which might, indeed, be better suited for this...