My opinion is that this "feature" is one of those good ideas that really has no good way to be carried out.
My opinion is that that there should be two Place fields attached to each event. One could be the "modern" place name that can be associated with a may via gps coordinates. It could even include the current mode of handling cemeteries, battlefields, etc that you mention.
Then, the second field would be a "free form" field, for the historic name, or prior heirarchical name (due to change in boundaries), or whatever variation - maybe even spelling variations over the years.
Boundary changes in the US are bad enough, but boundary changes for historical places in Europe are a nightmare, where certain places may have been in multiple countries, or places with multiple names over the centuries.