Dream - What's in a Name?

I had a dream last night that Ms Hollie and I were eating at a diner, and got into a conversation with the waitress. Her name-tag read "Muffy". We found out that was short for Muffington Crescent.

She introduced us to the cook, "Ned", which was short for "Needlenose Pliers".

My subconscious seems not quite clear on how personal names usually work.