I find that in many cases, overactive policing by GMs hurts the fun of gaming more than the odd troublemaking player does. In Neverwinter Nights (free, and not quite as massive), GMs do a much better job when they focus on enriching the gaming experience rather than questioning anything that seems slightly off to them. That said, they are essential for removing said bothersome players when there's an obvious need for it, but you can't catch something like that in words and you can't restrict 99% of the players too much just to keep the small minority at bay.
The same holds true for the naming system. Some names are clearly off and others plainly inappropriate. That shouldn't mean I couldn't name my character Johnny (The Shining), Aaron (biblical), Jin (Tekken) or Michael (singer), especially if it was never my intention to copy them or if I'd never even heard of the name being used in a 'well known' setting.
Back to NWN, it's a game with many different worlds and each has its own set of rules. You'll see that players find a place and ruleset they're happy with, and stick around there. As a result each world has its own community with its own view on what is right and wrong.
More than GMs, the community does the policing by teaching those who don't quite fit in how to play in a manner befitting the place, or if they seem hopeless cases, then by letting them know they are unwelcome and better off going someplace else. The reason being, those people found a place they are happy with. They're not about to let it be spoiled by others. And I think this could apply on a larger scale as well.
The trouble there is that you don't usually play MMORPGs together. You play them alone, and encounter lots of strangers along the way. You don't feel as strongly that you are with a group of others who are ready to back you when you remark to someone on their inappropriate behaviour. Keeping silent, everyone's left to their own devices and trouble starts. No wonder you'd need harsh GMs to keep peace then.
The same would apply to Guild Wars. Depending on how strong the community is there may or may not be trouble. And I agree with Link, there's no telling how that will develop until it's actually in use.
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