Other FF references! [may be spoilers]

[seiferalmasy2]

Palumpolom is quite similar to Palom and Porom from IV.

That seems a translation error. Either it was meant to be that originally or they have cocked up.

of course it might be that the japanese in the game is a variation on パロムポロム. But there is no difference at all between japanese for polom and porom for starters.

edit:

パルムポルム

This appears to be what they used for the town...so I take it back looks like I was wrong. However, this would be rendered Palumpurum (the only thing they have changed is O to U) as a better translation to Palom and Porom, but I am guesing they chose Palumpolom because it kinda looks a bit better.