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Its thought that the name 'Panama' comes from an indiginous Indian phrase meaning 'place of fishes.' And considering its geography, easy to understand; the seafood there is awesome.
Panama took its name when it split with the Spanish crown in 1821, and united with Columbia.
I do not like, nor dislike the name. It's a place name, a kind of neutral word. I can't think of any reason why one would feel either way about the name, since it was named a good long time ago. Its like asking whether America is a good name, or Canada...kind of moot.
Cheers.
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