Naming conventions in Genesis are expected to adhere to a general set of guidelines to prevent immersion-breaking names. If a player deems another player's name inappropriate based on the guidelines, then they can force them to change their name and bestow a warning on them.
Another potential feature is to not show names hovering above avatars' heads. This would allow for much more interesting situations, where players have to identify everybody by their face (the uniqueness made possible by the game engine). For example, there could be a wanted bandit that has to travel around in disguise so that people can't identify him. Furthermore, no player would “magically” already know the names of people they have not yet met. It it intended to allow players to customize their avatar to a high degree; since the game takes place in a zoomed-out, diametric view, the faces will likely be displayed in a separate box to show detail.