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Merry does work as a full name, too similar to Joy for me to feel differently. I do not hear a difference between Merry and Mary. I would pick Holly out of Merry, Merrily and Holly. Merry might have not caught on because it might be considered a butchered form of a classic girl name - it also reminds me quite a lot of Christmas. The commercialization of the holiday might have been turnoff for some. The other thing is that it might sound too sappy, and not as natural as other names with the same meaning.

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