The name makes sense given Microsoft's use of the codename "Natal" for the Kinect motion control system. Natal is a city in Brazil, and "Durango" is a state in Mexico, so it seems the company has a "thing" for naming their projects after areas.
Among the rumors about the Xbox successor are that the system will play Blu-ray discs, catching up to Sony 7 years after the launch of the PS3. Another is the notion that Microsoft will "incorporate some sort of anti-used game system" in the new console. It is unclear how this system would work, but it will likely not be foolproof, regardless. Additionally, Microsoft is likely to launch the console with the Kinect 2 motion control system including a built-in processor. The processor would allow the Kinect to process motions more accurately and smoother.
Finally, the console is rumored to use a touchscreen controller, just like the upcoming Wii U.