New Faq's Otoh is most likely the same city site as Old Faq's Otoh.
Real World References
OTOH may stand for, "On The Other Hand."
This could relate to the philosophical history of the Kingdom of Faq. In philosophical discussion, many different points of view are taken into consideration. Taken further, we may assume there are different options available to the people in Erfworld, such as the one taken by King Banhammer.