Indeed, and I personally much prefer them to be made-up names. When I see Shinnen, Sulorte, Smokey Hills I see a white paper in where to write. When I see RL name references I see a lot of luggage it carries within, which while I can ignore, it will be always coming back. It's like playing in an already themed region, in a way.
I have absolutely no objection to real-world locations, provided the names date back to the period we are mimicking.
I find region names like Faithhill, Kid's Rock, and Dantooine childish, and think that whoever suggested them as possibilities for Dwilight should be ashamed of himself.