I think why it matters to some people, though surely not everyone, is that words and names can evoke real responses in those people. And I mean real, like memories, feelings, associations, et cetera. Sometimes the real response is strong, even psychosomatic.
I don't think these people are faking it. Words have always seemed to have power.
When my wife and I were considering names for our child, there was one name in particular where she said that she could never name her child that. She had hated (HATED, apparently) a girl with the same name in primary school. The look on her face. The real emotions in her eyes. That name was definitely out.
I have seen people get in physical fights purely over a few words and name-calling.
I personally do not feel this way about words. I think we should not let words have such power over us. But for some people, words do matter that much.
As such, we have a choice when naming something. We can either ignore this power of words and risk having the name itself hold back adoption of the [product, service, whatever], or we can be aware of this power and conscious and conscientious in choosing how to name the thing.