Ubud is pronounced 'oobood' as in the same way as the 'oo' sounds in 'good'. Even if you mispronounce the name, the locals aren't likely to do anything more than titter. As they say, seng ken-ken!- Balinese for 'no worries!'.
While Ubud seems to outsiders like one small town, it is in fact fourteen villages, each run by its own banjar (village committee). Ubud has grown rapidly, and some central parts are creaking under the strain of coping with the number of visitors. That said, most development is sympathetic to the zeitgeist, if not designed specifically in the local style. Growth continues apace, but there are still terraced rice fields along the rivers, and away from the town centre, regular, quiet village life carries on relatively undisturbed. Central Ubud is heavily commercialized and teems with tourists.