There are a great number of things at play here, many of which I was hoping wouldn't have to be raised.

1) WordUp Edinburgh

Although I wont be attending, it's a wonderful little event with a great backing.
The WordPress community in Scotland, specifically Martin and Taryn, should be praised for their efforts to get it off the ground in difficult circumstances. I can't wait for their second one.

2) A "WordCamp" fork.

I don't agree with this I'm afraid.
The reality is that the WordCamp model maps itself to certain communities better than others. That’s not a negative statement at all; we can't expect every model to map to every system. The existing WordCamp model, and indeed it's implementation in the last few years as WordCampUK, is really poorly suited to the Scottish community. It's the nature of the beast, and the WordUp folks are just organising an event that matches their community's needs. It's a wonderful idea, but not a fork of an existing one - especially with the negative connotations that word brings in the IT world.

3) "WordUp Scotland"

While I'm quietly convinced that the good folks at WordUp Edinburgh were simply wanting to be accurate in their naming, there are a good number of reasons to call it WordUp Edinburgh.
It's accurate
Events in Scotland, with the name Scotland in the title receive fewer attendees from England.
With the shambles of WordCampUK in the last few years, I think getting away from Country names inside the "British Isles" landmass is a really good thing.

4) WordCamp + Name

With no disrespect to Jane (who works wonders) and the person who has since taken over from her the naming rules of WordCamp are simply not flexible enough - again, working for a very specific set of rules that really doesn't map well outside of large countries. As Donnacha has said a "WordCampUSA" would be ridiculous, but the idea that I could stop there being a WordCampUK by hosting my own WordCampShetland (only 12 hours by boat from the north of Scotland, a mere 16 hours travel from Edinburgh or 28 hours by train from London) is mental. These 2 *hypothetical* events are clearly not aiming for the same catchment of people, but somehow each have an impact on the naming conventions used with the other.

The reality is, while I do hate the WordCampUK moniker (it's in England, lets just call it WordCampEngland), an event 28 hours away by conventional transport should not impact it's name.

In my opinion, the Country rule should be changed to be one of catchment. In the US you can have a WordCampNewYorkCity, while WordCampBarcelona might not have enough people but WordCampSpain would preclude people from Malaga (a mere 9 hours by train) from doing their own. In this instance, WordCampCatalonia would work for the event in Barcelona while still allowing the WordCampSpain event to be held in the south west of the country.

The reality is though, that WordCamp+City causes a huge number of problem for organisers in smaller countries than the US, or when there is a growing community that neither matches the Country/City model. Sometimes the name catches too wide an area and sometimes it catches too small an area, simply to fit a model that rarely works outside of the US.

5) WordCampUK

I've spoken before ( here, here, here ) about WordCampUK, and how very un-inclusive it is (a whole 4 people made it from Scotland this year out of 200+tickets) with it's late ticket sales and moving of this year's conference 200miles further away from Ireland/Scotland/Wales to appease the "London based people" who struggled with the 2 hours travel to Manchester.

Purely as an aside, the journey from London to Portsmouth is still 1.5 hours; but pushed my journey time from 4 hours @ Manchester (2010) to 16 hours @ Portsmouth (2011).
How very "UK".

In reality if WordCampUK was named WordCampEngland many of the issues people had would have gone. It would have removed the perception that people in Scotland were in anyway thought of or catered for, AND would have enabled a WordCampScotland to be set up along side WordCampEngland. Again, it falls into the issue I raised above, that the WordCamp naming convention causes problems.

Conclusion...

We all love WordPress, and of course we're all going ti have different opinions. But after 4 years of being involved in this community, I very strongly feel that the WordCamp model has a great number of holes in it to the point that it doesn't map well to different locations in the world. The "UK" is simply one of those.

In the best possible way, the WordUp Edinburgh folks have made their own model for supporting their community. I can't praise them enough for this.