It's precisely because nobody speaks Latin that it's used so much for naming. The idea is to have a language that everyone can agree does not favour any one country.
Look at Switzerland: it has four spoken languages, each with its own vocal lobby: even deciding what to put on the postage stamps was a contentious question. The solution was to use Latin, as it belonged to no group at all. So, the stamps say "Helvetia", and the car-stickers read "CH" ("Confœderatio Helvetica" - "[the] Swiss Confederation"), as does the ISO Country code and thus Switzerland's top-level domain name.
Latin's other advantage is that because there are no native speakers to object, its pronunciation has, over the centuries, been knocked into a form that's simple enough that speakers of pretty much any other language can master it.