That's all fine and dandy, Al, but this is a thread discussing how MMO's should change and innovate, not which ones you play. As a mod, you should know not to respond to a thread by it's title...
Anyway, as for dealing with idiots, I personally would make it impossible to have a name start in lower-case, or have numbers mixed with letters in the same word, aside from things like '12th' and '1st'.
I'd also make it so that a character wouldn't be shown by his/her name floating above his/her head, but rather through chatting and looks. This would require a very extensive character customization system, but making a character is one of the most fun things about RPG's, so why not have it?