OP, personally I'd instinctively pronounce both Oberon and Auberon as Oh- beh -ron, even though typical English phonetics mean the Auberon spelling at least feels like it should be Aw- beh -ron instead - I think it's Shakespeare that makes me want to automatically say it the first way.
BTW I really like name Auberon/Oberon and don't think there would be teasing - Aubergine wouldn't have even occurred to me! (and anyway surely Clementine's and Olive's don't get hassle?) and while the King of the Fairies thing definitely would, I think it would thankfully be difficult for a boy to get away with calling another boy a "fairy" today.
Having said that, would I use it myself despite liking it a lot? - No. I'm not a risk taker so it would be middle name or a pet's name only for me - as I'd personally rather an extrovert DC was annoyed with me that they had a "boring name" than one that they were more uncomfortable introducing themselves with, if they turn out to be naturally shyer personalities.
But I'm thankful other parents are braver! Otherwise my James, Elizabeth etc (insert boring name here) would more likely be one of several in their class - the way it often was 30 years ago, rather than the only one (or two). And it would certainly never occur to me to snigger at/mock a child's name - and unless it sounds like something "rude" (toilet humour etc), I can't imagine most kids would these days either.