I'm thinking so there was no confusion between the rounds.
Yes
It sounded cooler and more powerful.
Yes
Yes
Everything the firearms industry does is to maximize profit. Corporations are not in any pursuit of truth or logic, they are there to make the most money now. Which is true of all Corporations. So those looking for logical name evolution are missing that this cartridge was first and foremost designed to be profitable for the firm. That is its primary need.
The creators glomed on the name Magnum, which was being used for the powerful H&H belted magnum rounds. After watching enough Tarzan films of Africa, of African hunters shooting elephants, rhino's, hippopotamuses, the word magnum was out there, was recognizable, and would conjure narratives/images of big things. And of course this was the most powerful pistol round every made (at the time), it was huge, it was big, it was bad, so why not magnum? And then, how do they make this a distinctive name, something that stands out, stands above all the puny, insignificant cartridges that had "38" in their name. Creating a cartridge name with 38 would not be distinctive enough, but 357 was new.
I am certain there was a lot of debate about to whom they were targeting this round and how they wanted it to be distinctive. They would have known that humans create narrative stories in their minds, so they were looking to make a name that created the story they wanted, and a name that had "stickness."
And it worked. But the name is only rational in terms of marketing. Not in terms of cartridge evolution or topography.
These brands were created because at the time, the primary names were recognizable, created a story in the mind of the customer, and would be memorable.
Because they were so far in the past, these brand names would have little affect in today's world, like the jokes of the past, like the movie drama of the past, but they worked in the culture of the period. And at the time, someone thought it would work.
Now this handy device would help you determine how long you would survive after a nuclear blast. The market was small for this slide rule.