I've already mentioned two examples where not being able to tell who a player is causes harm. Many players won't be aware of the foe feature (while it also doesnt work for matchmaker), and you didn't give a solution for the aeolus chat issue. I'd also note you haven't given a reason for the rule not to exist beyond 'two people might want to have indistinguishable names'. If two people want similar names that's already probably ok, so you're presumably not talking about similar names, you're talking about indistinguishable names.
In other words, if someone wants to call themself maudlin28 then that's similar to my name but clearly distinguishable, so is probably ok (although this shouldn't be taken as a general rule as I'd have thought the main factors likely to be taken into account on whether a name is ok is both whether the name is distinguishable from others and if there's an intent/risk of impersonation). If instead they want to call themselves maudIin27 then that's indisguishable from my name even if technically different.