Not entirely sure, but I think even Safer Sephiroth was a slight mistranslation, wasn't it? It was more like Sepher Sephiroth/ Book of Numbers? That's probably already been discussed a bunch, but I guess it goes either way. He's a giant angel so it's not like he really loses any religious context. Midgar also kinda fills in the blanks on that Norse mythos and at least puts the "half" in half-assed.
Doesn't always work though, as people think Goombas are mushrooms and not actually acorns. Still, it's in the mushroom Kingdom, so, if anything, it sorta fits in the context of the setting better than something acorn-y does, and the last thing I want in a game is a TL Note showing up on the screen. Sometimes, having something too attached to real-world terminology can turn off some players as well, "some players" being me. It's like characters having super generic names or how 95 out of 100 Alices in JRPGs all have blonde hair and a blue dress with a white apron. Unless it's played right, it slams the door on the immersion, really.
Tina was an exotic sounding name to the devs behind Final Fantasy 6, but it's not for Western players, for the most part. On the other hand, Terra kinda carries that same otherworldly token, so I think that they all achieve the level of exotic that they wanted though, which I guess is the best that could come of it, although fishing lods and black market bananas don't exactly count either.
It can go either way, really. The obligatory Phoenix Wright does a good job of it, so it really depends on the skill level of the localizer. Sometimes the accurate name makes for a good translation but a bad localization.