Digimon names are generally taken from their Japanese names and are worded to sound more like computer data (hence mon). That's why Garurumon is named as such because howling + monster. If anything it's easier to remember.
I don't have trouble with the names being Japanese - note that the similarly confusing example I gave was purely American in nature. Phonetic similarities have a tendency to cause confusion - an established fact that can cause people to get the wrong prescription, be the reason behind a trademark dispute, and form the basis of a type of humour (which the Japanese deftly abuse upon occasion). I'm sure that if I'd ever been given a reason (for instance if the show had drawn me in, or if more of the monster designs had interested me) to get more involved with Digimon that the name issue would have ultimately resolved itself in my head (something implied in my aforementioned example).
Often, when you try too hard to act superior, the opposite occurs.
I know one thing that would make Digimon a bit more popular: a virtual pet (Digivice) that had every digimon available on it for you to raise. You start with a newborn and follow different guidelines to reach many different digivolutions.
Otherwise... *shrugs* The Digimon anime was wonderful, and the games aren't really that bad either. I don't know why it didn't go so well outside of Japan.
As far as I know, no new Digimon-related merch has been coming outside of Japan for a few years now. We're lucky we even got Xros Wars. I'm hoping it'll kind of bring Digimon as a whole back.