The naming policy is fair and not a problem - if you cannot be bothered to log in every once in awhile to keep your named characters, then you are just not that interested. And yes, I create a massive amount of alts myself, some are experiments, some are keepers, it's only fair that the name be vacated if I am not using it actively. I know this is hard to swallow if you suffer from entitlement, but sometimes you have to put in a little effort to keep something - just like in the real world.
On top of that - losing the name of a character because you don't use it - first world problems; if that is the worst to happen to you on any given day, it's still a pretty good day.