I don’t understand why you would not want to use the FQDN (I am assuming you are talking about the initiator node name). Given that you don’t, you should at least use the server name and its role or purpose (SQL, FS for File Services, PS for Print services, VM for virtual machine, etc.) to assist in identification of connections to the iSCSI array.
In complex Active Directory implementations, using the FQDN is the only way to insure that you are taking into account where in the forest or federation a given server may reside. That will assist in diagnosing connectivity & authentication issues, firewall rules, etc.