When a bookmark is encountered that refers to a special place, then the name of that bookmark is used to overwrite the basic folder name.
Usually, the special places just appear in the nautilus sidebar, with the name of the folder in the users home folder, which is usually something like "Documents". If (as in my case) the special folders are changed, to be something like "~/org", nautilus just displays "org". It is then possible to rename the bookmark in nautilus to something more fitting for that menu like "Documents" again. This behavior is not matched by the places menu, where those places still keep the folder name.
This change allows that same behavior to be adopted for the places menu. I find it unlikely that it will impact any existing configuration in a negative way.