Of course you can set whatever 'name' you want, so I very strongly suspect many people will set a false name for the above reasons.
But this goes completely against MS intentions to rule out scams and other false identities. Because this was one of the major reasons why they made that (unbelievable crap) move
(cba to give the link, but it is on one of the official blogs).
All I can say is: if you don't like it, complain as much as you can to MS and/or on all the forums and blogs you can find.
They might have done excellent work overall with this new Wave 4, but this whole 'full name' business, the lack of a decent warning that all your profile contacts will be converted to Messenger contacts (with all the privacy issues it can cause), the by default auto-installers, etc, is a complete and utterly crap move of which all I can say: What the *beeping* *beep* were they thinking (and that's even said in a polite way).
This isn't about '
getting used to changes' or '
getting rid of the old and going forward in time', or even a '
personal taste of a feature' or whatever, this is all about
privacy!
And for that, dear MS, I give you
.