Repetitive names do seem to exist, looking at Germany's Bergs and other such things. But as a note, I only add the suffixes to castles and seas and other things which have titles to distinguish them from villages. Villages are named after people or things, so I don't add a suffix, and thus don't run into the problem of repetitiveness.

The reason it remains Varresholt and Muirharran is because to the people who live there, holt and harran are part of their modern language. They aren't things like borough or shire, which aren't used in everyday conversation in English these days. So while to us it sounds like Muiran, to them its still a combination of two words which they know the meaning of.

While traders and locals may slur it, its still written in its proper form, just like how we still write it Toronto, even though everyone says Toronno.