I always assumed that the Shady Grove melody was adapted from Matty Groves, not the other way round. Good to know.
I've been singing and playing this one a long time (in Sawmill tuning) and I think the singer was perhaps too shy to sing out the name of the girl he was pining for in front of his comrades so he used the name of her home town instead.
Last Chance tuning is another one named for it's tune.