Board Thread:Editor Board/@comment-4631119-20130727164512/@comment-6697950-20131014173009

They literally translated from the kanji, thus they could have ended up with any word that means the same thing and they likely just picked one they liked.

However, Reki has personally used katakana to name the guild in once instance, and this makes the name unquestionably "Divine Dragons Alliance", especially since the guild's abbreviation is DDA, which should have also been a hint to the dub people of the official translation of the name, if they had actually bothered to contact the Japanese about the official names.

Thus, it's not a matter of "catering to the audience", but a matter of going against official naming due to laziness.