Caoimhe is a perfectly normal name in Ireland, but you're right, all Irish mothers or women from other cultures should choose their childrens' names based on how easy they are for the predominantly North American users of resetera to spell and whether or not they might sound similar to slang like "queef" that is basically unknown in Ireland/the country in question.
There seems to be a racist/cultural supremacist undertone to this question and a lot of the answers here.
Should all immigrants to the USA give their children good white american sounding names? Should the OP's wife give their daughter a more acceptable name for the UK audience?
How about all the other immigrants from around the world living in the UK? Should they forget their culture and call their children Bill and Mary so as not to inconvenience the white majority?
Yep. It's perfectly reasonable to want to give your child a name which you and your partner both agree on, but the reasoning for the dismissal of the name in this case, and some of the answers given in this thread, are borderline xenophobic and the racist undertones would be rightly called out by now in the thread if it wasn't an Irish name but a more US-centric name.