And why are people so darned pleased that they named a town about him dying?

Rorik isn't dead. He's still alive and wandering around the little town of Rorikstead. He bought the land and let people live there, the land is prosperous and fertile and they are elated he's letting them live there.

Rorik was my first character's name. I was pissed when I learned of Rorikstead and the name-stealer who lives there. It's why I wanted the ability to change my character's name.

This. Where did you get the idea he was dead, OP?