For what it's worth I emailed Jan Pieterse (the defined name guru), and he just replied with the following:
Hi Sid, Is there a way to prevent Excel from making the override definitions
> when a sheet is copied?
No, there isn't. But my Name Manager (www.jkp-ads.com/officemarketplacenm-en.htm) will greatly ease the process of getting rid of them. The "override" names are in fact names local to the just copied worksheet (hence the name of the sheet behind them). So if you only use global names normally, just filter the list of names to show only local names, select them all and click the delete button (the one with the red X).
Regards,
Jan Karel Pieterse
JKP Application Development Services
So there you have it, folks.