"Rare earth elements" is term used in chemistry for
specific group of chemical elements.
Consequently phosphors using some of these elements got their name, hence "rare earth phosphors"
I guess it originate in the history, when the deposit they were found in was considered as rare.
How rare are they in fact today i don't know, but the fact, then the majority of them is mined in China would make them really rare for non-chineese industrial users...