I also feel using a stage name can help you feel more secure and free on stage. I had a friend who was a DJ and her cards had her full name and number which caused her grief from the occassional wierdos and since then I've regarded anything that creates a subtle distance between performer and audience as an extra safeguard helping to enforce existing boundaries.
As for using arabic or exotic names Ithink its suitable for the type of dance we perform and that an audience member would perfer to see Farah belly dancing than say Maureen as it helps feed into the fantasy of the performance. Just like it may be disconcerting (though not wrong by any means) to have Scottish or Morris dancing performed by a Horacio or Tariq
Sita