This game is still pretty customizable imho. Change the name of each team in respective language file (usually located in "<CS2D folder>\sys\language\"). The number before the name of the team is just a line number which CS2D reads, just ignore it. Now play in a team as "Cookie Monsters" in example.
Quote
English ("English.txt"):
0292=Terrorists
0293=Counter-Terrorists
German ("German (Deutsch).txt"):
0292=Terroristen
0293=Antiterroristen
Swedish ("Swedish (Svenska).txt"):
0292=Terrorister
0293=Antiterrorister
How to change name of team titles? simply edit them by doing the following to each of the specified lines.
0292=Iraq
0293=Cookie Monsters
Thereafter you can just copy the default graphics of your player models and rename them and then add new ones that represent each team as Iraqi soldiers and Cookie Monsters, just use your imagination.