Keeping Historicals period aware or dumb them down?

I recently joined a critique group -and I value their feedback. I really do because unlike family or close friends who have no grasp on what I'm trying to do but support me they're prepared to ask me the hard questions.

I'm currently working on a major project (over 70K) that's a prequel to Master's Mistress. It focuses more on the Celtic aspect of my heroine's parents and heritage. In an attempt to keep to the time and 'feel' of the era I've been using Gaelic words/phrases and period names. The names I selected are quite common today - but I used the non-Englishenized version to give them a bit more lore.

What I've been hearing is that for the most part readers want something dumbed down. They don't want to look beyond the words to see the definition, the meaning behind a word. I can understand this, I mean the point of reading is to escape. What I can't understand is why if you're reading a historical you want a more modern spin on it.

Perhaps its mearly my confused brain - but I like to write in the period use the correct terms, ideals, culture. So in an attempt to start a discussion and get the juices flowing, I'm going to ask you what you think. Keep a historical period aware or more modernized and dumbed down?

Thanks so much and have a great weekend.