You know, it occurs to me that debating what to call the server actually has a funny catch to it. I think when most people are talking about naming "the server" they are talking about the server name that displays in the City of Heroes client (and not, say, the Titan XMPP server). That's actually got a name: localhost. Ignoring the odd network mechanics surrounding .1, everyone is either selecting 127.0.0.2 or 127.0.0.1 and both of those are local loopback addresses for localhost, meaning we're connecting to our own computers, where our own individual copy of Paragon Chat is running.
Now, localhost is kind of a boring name, but technically speaking that could be customized. Codewalker could add a command switch or config file that would cause that to be displayed as something else. Or alternatively if that was difficult, we could all add /etc/hosts entries for custom name that Paragon Chat could use for its listener; i.e. 127.0.0.2 MyServer. Point is, with some technical work practically anything could show up there.
The really interesting question is: should it be the same thing for everyone? And this is the funny catch to it all. Because we're actually connecting the game client to our own copies of Paragon Chat, none of us is really connecting to the same "server." We're all connecting to our own individual servers. And even if you think that's just a technical point, because we're all ultimately connecting to the same XMPP server, well that's not actually true either. First of all, its possible to connect to your own XMPP server: I do so to test my bot development. And as an explicit part of the system design Codewalker stated that Paragon Chat was intended to support "private" servers people could set up to do things. Eventually, cross-server and possibly federated server features are on the roadmap which would allow players to set up their own servers, and then link the servers together into a large server cluster, and even connect the clusters into giant global server networks. At any particular moment in time, a Paragon Chat player might be connected to the Titan server, then decide to join a friend on a federated server, then jump to a private server where a PnP game was being run, while still chatting with people on global channels linked to servers connected globally back to Titan.
In that world, what "the server" should be called is actually a rather weird question. The answer really is "whatever you want" because it won't signify "where" you are. In a very real sense, your server is your own. There is no City of Heroes server, there are only Paragon Chat servers. The only City of Heroes server you care about and the only one you can really "connect" to is your own, personal server. So really, it should be called whatever you want it to be called. After all, its your server.
In City of Heroes, as with all MMOs, "the server" was a meeting place, the place where you could see and interact with other players. If they weren't there, you couldn't really interact with them. In Paragon Chat, "the server" is where we are, but it doesn't limit who we interact with. We can interact with anyone, anywhere, on any "server" provided the XMPP links are there. In fact, in a weird sort of way Paragon Chat is virtual reality for City of Heroes. We exist on our own server. Everyone else shows up "virtually" on our server so we can see and interact with them, even though in a sense they are still on their own server.
Its a brave new world.