I'd say it's already an issue.  I just signed up and am trying it out, and I can't find a single first name that fits the character that's not already taken.  I'm starting to get so frustrated with trying to find one that works that it's seriously tempting me to just give up. I did take a look at the rest of the char creation system using another name that I don't want to use(but is available), and I do like the idea of it, which is half the reason I'm still banging my head against the name wall.  I wouldn't be surprised if quite a few new players run into what I have and just turn and leave without even saying anything on here.

The game's playability should not suffer from an artistic vision... and if people are already having trouble coming up with names that will be accepted by the system, than this is already happening.

What is a great fantasy world if no-one can see it?... quite simply, its a delusion. http://en.wiktionary.org/wiki/delusion

Now I am probably not the only one to complain about this, but I feel I must do so for the record. In my creation of my character I discovered that you cannot have the first OR last name of someone else.
This is rediculous as not only are there many people with the same last name, there are many people with the same first time. Some people even have the same first AND last name, but of course that would be going too far. If I want to be 'Greg Smith' for example, it shouldn't matter if there is a 'Greg Emmerson' OR a 'John Smith'... only if there is a 'Greg Smith'... not that I'm saying I want to be Greg Smith...
Please make the system more leniant.