S'cuse me, but I have to think that intentionally skipping where the name came from suggests intentional dishonesty by omission. It was what her marine biologist father called her as a pet name. Yeah, the name of the movie was meant to be a bit titillating, but not nearly as lewd as you want to imply here.
As far as the heroine, she was portrayed as a successful business woman, a leader of women and absolutely no dummy. I bet it annoys you that she was also beautiful.
Also, Bond killed a bad guy in the movie by throwing a poisonous blue ringed octopus at him. Her pet octopussy.
By the way, the opening scene in 70 MM is the only image of the Taj Mahal that I thought did it justice.