For me it is less about the name and more about the storage space. Imagine if all these level 1-5's that are no longer played were deleted. All their empty inventories that are allocating space would go away. This leaves more room for active, leveled characters... A lot of limitations come down to server issues, and keeping all these Unplayed/never played characters just causes more server strain. If someone made an alt and really wants to keep it or play it later, asking to get to like level ten is not going to hurt.