I think the street name just suggests that outside of the highly hierarchical Mushroom Kingdom and DK Isles, King K. Rool's actions are seen more positively throughout the Mushroom World.
Perhaps he is like a revolutionary hero to some. Maybe for the residents of New Donk City, K. Rool didn't "steal" the bananas as DK and friends want everyone to think. In New Donk City, perhaps K. Rool is perceived to have heroically redistributed the food hoarded by the 1% of DK Isles to the rest of the animals, from the beavers to the wasps and even to the beavers in spinning stone wheels. Maybe they sympathize with K. Rool and the Kremlings after the Kongs blew up their home. The street name could be in honor of his revolutionary actions against the powerful, well-connected, dynastic Kong family.
Obviously these ideas are not popular in DK Isles or the Mushroom Kingdom since both are ruled without much say from the populace. The regimes from these countries wouldn't be happy with this kind of thinking spreading.
Mayor Pauline might definitely endorse this point of view, especially since she might understand the Kongs' less savory characteristics first hand. Unfortunately, I'm sure her hands are tied to some extent. The powerful Kong family and their Toadstool allies probably used their influence to name the other parts of town after regime-friendly figures like Rattly the snake.