Having been part of several data center moves, using location in the server name never seemed practical but they continue to do it. Naming servers after characters while fun can lead to some miss understandings with the wife. Getting a late night call for Miss Piggy did bring up some questions. 🙂
In an environment with many servers, numbering becomes a requirement. I require each server to have a unique number. Having multiple servers numbered 1 is not helpful. I expect we will never have more than 999 database servers but you never now.
The server name often includes an identifier for production, QA, testing, developer,... Which worked well for production, but for the other environments it was considered a suggestion after a while.
Database names, user ids, and windows groups all identify their environment. It someone is running a query against a database with the suffix of _PROD. They must know it is production. A windows group for DEV would never be granted permissions to a production server.