West Bengal located on Eastern part of India no longer needs confusing reference shouldn't be renamed Bengal?

Yup, you are right ! Now that we do not have an East Bengal, we should rename West Bengal. However, Bengalis still refer to themselves as East Bengalis and/or West Bengalis, so its a part of their tradition and history. But I agree that it sounds funny. The issue of renaming the state is currently pending due to diverse opinions on the probable name. You see, Bengalis love to debate !