Not everyone is good at coming up with names, or are rushing to play with their friends so they just put whatever. I hated my old FFXI character's name. After I had decided to come back and make a new character after "quitting" for a few months, I spent the next 2 days at work coming up with names. Good names, names I would be proud of. Every single one was taken. I was dumbfounded, none were ripoff style names. I hit random and it just produced faceroll garbage. So I just put in the first thing that came to mind and went with that. Now down the line I was able to come up with a decent non-taken name that I managed to snag after 2 server hops(One away because all my friends had quit playing, and one when they came back 6 months later). But even after spending 6 months off the server, people still knew who I was when I came back by one mention of my old name, which I was still called and am still called today. So your not going to be able to escape bad reps as easy as you think.
Same thing happened here to a bit. I wasn't sure if I wanted to play a Roegadyn or a Miqo'te, but I went with a Miqo'te, because that's what I played in 1.0, and I was a Mithra in XI. So I tried to come up with names. But I suck hardcore at it. I even asked my favorite author if he would give me a character name, he said no of course but seemed amused I asked. So after about a week of off and on coming up with names, I had a nice list of first names and a nice list of last names and none of them went well with each other. So when the game came live, I wanted to play with my friends... hit random, didn't hate the name, so I went with that. I liked the character fine, just wished I would have gone with a Roegadyn instead, and once I found out I would be getting 2 potions of remaking awesomeness, I took the plunge. I couldn't really start over, as I am playing with friends and can't really ask them to wait on me to catch back up.
And for the server transfer, even though you said you don't like it you seem to be missing the point I'm trying to make on it. It's already a thing, it's coming. People will be able to escape their bad raps, which i personally think you are over-blowing a tad, with this service. So why not go ahead and add something in to make other people happy, even if a small few might use it to pull a fast one instead of using a server transfer to the same effect?
Bottom line this is a game, meant to be enjoyed. I feel like I could enjoy my game better, without causing anyone any harm, if their was a name change service added to the game.