Instead of generating a language from scratch a "half random" approach might be get the job done just as well, without making the languages too different for the community to use if they see fit.
The entire language, or certain words, would be the same every time for the major races. But, the further from the capital city, for that civilization, a settlement the more words are changed.
In the case of multiple Civs of the same race it'd pick one to be the so called racial capital and the other would get its language altered slightly, and then go from there. These changes would be most obvious on larger maps.
Once the world begins creating history, trade and war would be the only 2 things I'd have altering the language. With enough importing of goods a Human city might refer to swords as a "dastot" instead of "thil". Or, with war, a Dwarven settlement conquered by humans may use "abo" to refer to man instead of "udos" after a generation or two, if there were enough survivors to let the language stick around there.
...At the moment Dwarf Fortress is impossible to take seriously because you can easily end up with an organization named "The Council of Flayedbonobo Phalaces" which makes little sense, is needlessly offensive, and and ends up having no connection to anything else that the game generates....
The
ridiculous awesome names are more about the current robot not choosing appropriate words, or phrases, to the cause/actions of the group/individual. So, as it stands just doing a language generator won't make things less
ridiculous awesome until the robot has a catalog of what words/phrases are appropriate to what situation, as well as adjectives and adverbs.
Thankfully unfortunately there are no taboo words in the language lists, yet. So, no "The Council of Flayed Bonobo Phalli", the game doesn't allow adjectives on "of X" words either. About the closest we can get to filthy is titles/groups with the word "clam" in it, such as "The Beloved Lustful Devourer of Clams". Or, the word "dogs", such as "The Amazing tight style of dogs". More comprehensive naming is on Toady's list IIRC though.
Side note: You can modify the Raws labeled language to fill out your "language bank", if that's your thing.