Whats up with names like Hulu, Roku, Yeti and others that have little or nothing to do with what they sell ?
International companies have a hard time having names that DON'T mean something lousy in another language, which is why they go with random letter generation.
Yugo, in Mexico, means 'doesn't go'. Not a good name for a make of car.
Most descriptive names are already in use. If you used something similar, you might get sued for trademark infringement. Besides you would never get a web domain name for common descriptive names. A short goofy name is easy to recognize and remember, and easy to type the short web address.
Names often become trademarks. Some of the most valuable trademarks are those that are very distinctive, such as fanciful words like EXXON, KODAK or VIAGRA. Next in line are the arbitrary brands like APPLE as a brand of computer. Part of the goal in branding is that it stands out among competitors. If being outlandish does it, then there's your answer, from one humbly Yahooligan to another.
Literally, all the good names are taken. These new "Web 2.0" names are often chosen because a matching domain name was available for their web site.
and how stupid is Yahoo?