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Upon trying to understand and control the way the game creates names I've discovered some interesting things as well and trying to improve what's there.
For example (as ReFa already discovered) xml object "types" are include in certain situations:
type 0 = seems to be universal these towns are present everywhere
type 1 = seems to be universal but much more rare than type 0
type 2 = towns at high altitudes
type 3 = i can't make type 3 display
type 4 = coastal areas
type 5 = works in coastal areas but more rare than type 4 but I can't determine more functionality
Also the "numempty" variable in the structure category can limit how often the prefix or suffix is used. Setting this to 0 seems to make it happen always. Setting it to 20 or 30 makes it much more unlikely to use the data.
I still would like to make a particular item not carry any prefix or suffix (for instance Indian names in America do not follow the British style names).
I was actually surprised that none of the town types seem to follow certain terrain types. I expected to find some types of towns that build only on desert but I didn't find anything after extensive testing.
Anyway, discuss further with me please if you discover anything else.