Now I am all for complete customization in your character, however, we have to remember that this game is supposed to be very different than your typical MMO. I think that it might be best described as a RPG/MMO Hybrid.
I agree, this is supposed to be a unique experience as compared to any other MMO. On a side note, the full acronym is MMORPG, they're all already an RPG/MMO hybrid lol
As far as names go I think one could alleviate "loves2sp00ge" (get the reference?) or "pwnmaster" and all that at least a little bit by having rules on name creation, such as no numbers or has to be at least two words (like in Guild Wars).
I myself aren't concerned with the retarded names that much because all that takes is a couple name reports and they have to change it. What I'm worried about is the damn alt-code letters in the names, they should disallow those on the US servers at least. If your name is taken, tough titties come up with a new one instead of cheating the system