Games are not "literally translated" just like almost everything else isn't. Localization should capture the spirit and intent at its base level even if the meaning isn't always the same. Localization often involves changing the names of places and characters. It's an unavoidable--and often desirable--part of localization. That's why we don't have Kinopio and Teresa in Mario games over here but instead Toad and Boo.
Capturing the feeling yes. But not invent whatever like one guy who talked about his father (which Isn't mentionned in any way in Japanese).
And there's a difference between your joke names example and real "names".
I'd also argue that you can still have success with something while keeping names.
One Piece sells a lot here and all the names have been made identical to the originals (not at he beginning unfortunately, still sells).
I'm having the same 1000000th discussion. I perfectly know what needs to be adapted or not don't worry. Still we get something like Wario/Waluigi and most people still have no idea it's a joke with the warui word. Didn't make people reject them.
I mean... I'm ok with how it is. I'm just saying it's very different from the original which seems to happen more and more.
And I'm not even asking for anything. But yes, you can translate well AND more accurately. Not saying they have to. They don't care about what the minority I'm part of wants. Not sure why I need to explain : p.
I still like what I played a lot.