I though for quite some time about the weapon naming, even before this mod was started I was allready editing out some overly fantasy-ish weapons (greataxe..) and editing in weapons I felt were missing (polearms!).
As for the reasons I went with the historic naming scheme: They are accurate, established terms for existing and practical weapons, especialy that last part I find rather important. Nothing quite as imersion breaking to me as rediculously impractical weapons and armor, like swords that would weigh more than the person wielding them or those silly giant pauldrons that MMO games cant seem to get tired of. The actual names are mostly there for a lack of ingame description of what weapons and armor look like.
If I call a goblin sword 'clan blade' that tells the player nothing about what it looks like, which means I either have to stick to fantasy clichés (clan broadsword?), rediculous self-describing names (short narrow sword), established terms for a certain shape of sword (arming sword), or write up a whole encyclopedia with descriptions and translations. Since I dislike fantasy clichés and like history, I went with the third approach. Convenientely, right around that time someone started a realism mod compilation.
Now, writing ones own canon is all what fantasy is about in my opinion. Im absolutely terrible at naming things but I welcome anyone who wants to adapt this mod to do so.
I should also mention that AD&D actualy has realy terrible at historic accuracy. Terms like 'longsword' or 'banded mail' are neologisms, terms made up recentely which often dont decribe anything accurate. Longsword for instance came from a german manual discribing various fighting styles with a bastard sword. To hold it with both hands behind the guard was 'langschwert', and to hold it with one hand behind and one in front of the guard was 'kurzschwert'.