The neighbor/landlady/etc "nicknames" are pretty much required for any kind of an incest patch to work unless the characters just never referred to relationship status at all and only referred to each other by name. But then nobody would ever call Ann "mom" or Alice or Lisa "sister, sis, etc". So the sanitized version just has to remove the incest references, it doesn't have to make it sound good in doing so. Getting rid of the nicknames would pretty much require completely rewriting all of the dialog in the game and then an "incest patch" would require doing that again to reverse the process.There's a patch on page 1. She won't be your neighbor anymore after applying it.
And yes, I tend to agree that usually people refer to each other using names instead of relationship descriptions.