You're allowed to petition asking if a name can become available. Staff will check if it's just an empty level 1 holding the name.
This isn't talked about much and I'm sure staff don't want it advertised. There is already enough on their plate(s).
It's not necessarily a bad thing for players above level 5. How do you know if a player is going to return. It would look bad on the server if their character lost their name while they were gone. I'm sure you'd be upset if that happened.
But yeah there needs to be a purge and they need to fully enforce the naming policy. These two things go hand in hand.
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