I'm not sure how HC intends on implementing the name release, but on Legacy when the devs ran the script to release names (all of twice), it did not generic any character name that fell withing the given parameters. A released name only genericed when someone else created a character (or renamed an existing character) and chose the released name. So, the released name could sit there unclaimed and the owner could log in a year later and the released name would still be on their character and would once again be claimed.
If I recall correctly, one of the Legacy devs mentioned that of all the names released when they ran the script, the amount of names claimed from that pool was a single digit percent.