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They didn't come back as SUVs much less electric. The reincarnation of the GTO was a visual joke but at least it was supposed to be a 2 door 'muscle' car. The Thunderbird was all over the place during it's history and final reincarnation, but at least it stayed a 2 door car. You're right, it's "just a name", but it makes zero sense.Impala, Charger, Malibu, Dart, all iconic cars that came back out nothing like the icons and still sold well.
The difference is Ford still makes the iconic mustang too.
semi related I saw a new blazer today. I really line it. I will never own another GM vehicle but I think they will sell a ton of them.
Generally people like specific models for a reason, sometimes that includes nostalgia. I doubt seriously there's a Mustang owner or wanna be Mustang owner anywhere that ever uttered the phrase "I really like Mustangs, I just wish they'd make it as an SUV... and an electric one."