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Personally I have decided this name is adorable. I mean, try to remove from it all the associations you have from it and look at it from a phonetic standpoint. It has a lot going for it! It's short, snappy, has a cheery, bouncy sound; it has some great nickname options as you said, with Edie or even Eddie as possibilities. It's easy to spell, easy to say, has a nice meaning, and is even featured in the Bible. Lots of pluses!

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I would use it if a partner was open to the idea, and since it is so universally reviled I think the hipsters might adopt it... after all I don't see how it's any more hideous, outdated, and crotchety-old ladyish than Matilda, which has gained status among the rich and famous. If Matilda can be cool, why not Edna?!