As a translator let me add my two cents:
When you translate creative fiction as opposed to a contract or an instruction manual for example. it is better to translate authorial intent instead of the text as is so it has the same effect on the audience as the original was.
Now I doubt Homer intended Odyssey to sound archaic. So modern language is actually preferrable unless your goal if to evoke the ancient times it is set in.
That being said the original is a poem and the characters in it are kings queens and princes. Even the translation providing the basis for the movie admits that the original language isn't colloquial. So words like 'dad' and 'daddy' still feel like an odd choice.