Exactly, "or something like that". Alternatively, it could be a lord who rules over bits of colored cloth. Or maybe it's a forum moderator who's a bit too overzealous with the banhammer (he bans, so he's a banner). Your interpretation relies on prior knowledge of M&B. And while a lot of players of M&B2 will be coming from M&B1, I think it's fair to say they'd buy M&B2 regardless of what it was called. The point of the name is therefore to catch the eye of new players, and IMO a nonsense word like this isn't the best way to do that.
I'd really love to know who's responsible for naming stuff at TW, though. "Warrider"? "Warband"? "Bannerlord?" Who comes up with these? It's like they just take two random medieval-y sounding words and stick them together.
Lots of sequels and expansions have titles that rely on prior knowledge of past games.
Your previous example of Skyrim is one such game. It's part of the Elder Scrolls series, being the fifth installment, but to anyone who isn't familiar with TES lore the name "Skyrim" has no meaning. It's not a real word (despite your anagram argument, especially not an English one considering Skrymir is just an anglicized spelling of the name
of a giant from Norse
mythology), its constituent parts can be inferred to mean a variety of things (the first synonym to a "sky rim" I come up with is "horizon," not magical snowy dragon land), and it can only be explained by playing or by having previous knowledge of the series (where Skyrim is described as a northern province, homeland of the Nords, etc.).
This is not a difficult concept, Ringwraith. You're throwing us oranges and saying they're apples, but when we throw them back you insist that they're oranges because you're not the one throwing them. Stop being a ******** hypocrite all the time.