How would you handle the friend's list and mailing (potential) fiascos that will ensue?
If you are 'Scirocco the Elder' on my server and there is another who is 'Scirocco the Eldest' and then perhaps a 'Scirocco the Grey" as another who is 'Scirocco the Gray', don't you think there is an extremely good probability of having many mistakes made? Not to mention someone who maybe takes a 'Scirocoo the Elder'?
Honestly this is worse with any system where other players start taking names from those established. How would they deal with the friends lists and mailing and autionhall and everything else that already has those names. They would have to completely rework a half dozen features to accommodate a system like this.