I like Xaligus
Love it.
That said, I agree that recreating a realm with an old one's name is to be discouraged. But only if it's using the exact same name. Recycling or referring to another realm's name, though, I quite enjoy, as it makes the realm feel like it has a deeper connection to the game world, and isn't just some random name pulled out of someone's ass. I have no issues with some formulation of "New Xavax".