Another noted: “They’re getting free publicity – they ought to have been happy to have a funny name."
Free publicity that leads to sign posts being stolen. For a tiny village of 100 people, this is likely a serious hardship. If it isn't bringing in more money than it's costing them, it's an attractive nuisance, not free publicity.
It's a tiny village. Such places often have a real sense of community that you don't have elsewhere. Injecting a lot of sexual nonsense into their little town because of the name likely feels rather rapey to them.
That's sort of like the old fashioned advice that if a woman is going to be raped and can't avoid it, she should try to enjoy the ride -- which is all kinds of deeply offensive and morally depraved.
These people find this behavior offense, offensive enough that they changed the name. They don't seem to find the name offensive. They seem to only find the behavior of random people coming to their village offensive and they don't know another way to stop it.
I recently passed through the town of Weed, California and bought a tie-dye hoodie from a gas station with the town name on it. Didn't need the hoodie, but they sold them so I bought one for the novelty. Voilà! Business angle.