A heck of a lot of things in modern speech are composed of obsolete words, which doesn't mean they sound ridiculous or something, even though their components alone do sound ancient.
Мёд+Ведать=медведь

P.S.Хотя есть не менее интересное разбиение: "медв" (медвяный=медовый) + "ед"(есть, поедать).