Having surnames is better then...

Choose a name.. Name already taken
Choose a name.. Name already taken
Choose a name.. Name already taken
Choose a name.. Name already taken
Choose a name.. Name already taken
Choose a name.. Name already taken
"Fine stupid game" XxxCloudsephirothSSJxxx...accepted<= there is even has a npc in the Gridania areas making fun of that.

I found it annoying at first, now does not bother me at all.