Why are a number of small towns in Indiana named "Morocco", "Algiers", "Lebanon", (also New Goshen and Salem)?

Answer 1

Probably, when those towns were founded, North Africa and the Middle East were seen as exotic and trendy.

In my home state of Michigan there are a lot of cities named for Greek places, including Sparta, Ionia, Troy, etc. Town naming goes through fashionable trends, just like baby naming.