I understand what you are saying about children's literature. It is difficult to do anything else as a child's scope is not so great as an adult's should be. That said, I do not believe in full domestication for adults. Some things are difficult and it is not possible to retain them. But for others there is no reason to domesticate.
For example, a simple thing in German:
'Herr Lasemann', simple: 'Herr Lasemann' in English. I would not opt for 'Herr' to be translated into 'Mr' as that would become too English. We are still in a German village.
'Herr Doctor/Wirt' is still possible in English: 'Herr Doctor/Innkeeper'. It brings something German into the text which you have kind of lost by translating it into English.
But 'die Herren Lasemann sind im Haus' is not easy anymore. You cannot translate into 'The Herrs Lasemann are in the house', nor 'Herren Lasemann...' So you need to go with 'gentlemen', but that's kind of sad, because it takes a little away from the form of address.
But I do not believe that translating names and forms of address is at all helpful. Unless it really cannot work in the target language as above because it is gramatically wrong.