As you said, the literal meaning of the words humorously indicates a less-threatening witch. A possible reason for the _exact_ choice of "Faintly Macabre" is that, when spoken quickly, it _sounds_ a lot like a name, more than your proposed similar names "Mildly Disturbing" and "Slightly Scary" do. For example, "Macabre" sounds a bit like "MacArthur" or other "Mac-"/"Mc-" last names. And many female first names in English end in "-y", like "Dorothy", "Rosemary", and "Hilary", including some "-ly" ones like "Emily", "Beverly", "Lesley", and "Shirley". "Faintly Macabre", "Miss Macabre", "Aunt Faintly", etc. all seem to me like they could "flow" in speech like an ordinary, unremarkable name. Plus, using less common, more academic words helps with this effect, making it easier to half-forget that they're real words and imagine it as a real name.