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There is an island in my country called Jost Van Dyke. It is pronounced Yost Van Dyke and because of the pronunciation, it is often misspelled in searches. I get a lot of hits for the misspelling. I simply put Jost Van Dyke, (pronounced Yost) is ... blah,blah,blah.
Because I live in a British territory which mainly caters to American tourists, we are also faced with different spellings of various words which are important to my business.
For those such as Cay, vs. Key or Quay, I put the various words in my keyword lists, but only the proper spelling (name of the place) appears on the page.
There are many other instances I've run into. Its amazing though what you can do if you build a glossary for your site and build in all the misspellings or common language differences! My glossary page is remarkably popular! ;)
I draw the line at purposely misspelling the name of a person or place. IMHO that's just bad form!