Meh. If they inspire entertaining, fitting fiction, what matters the source of that inspiration? After all, there are interesting actual place names, like Nanty Glo and Martha Furnace in PA, just begging to adorn a good story.
Faulting a neural net for somehow ‘spoiling’ promising place names strikes me a bit like lamenting the challenge of writing fresh new music because all the notes, chords, and harmonies have already been used.