SPOILERS! Mysteries and Conspiracies of Pokemon

[12-XVI]

Does/should team rocket have something to do with space? From the name you'd think, but they don't seem to.

No, because it is just a name. It's probably meant to be symbolic or to just serve as a name rather than a description.

 

[DrPumpkinz]

Wonder if "rocket" has some other connotation in japanese or if they're literally just called that because it sounds cool.

 

[12-XVI]

Maybe "Rocket" refers to the fact that they extend their reach to the stars above.

 

[R_N]

I assume it is because it just sounds cool.
The game corner also might've had something to do with it; Rocket Game Corner would have in-unvierse kitchsy stuff about big wins and so on. I think it does, even, at least in some games.