Only time will tell whether the upcoming Second Life Display Names architecture will ultimately prove to be a wonderful source of endless possibilities or an ill-considered fiasco of fraud and griefing. What I do know now is that one's name – in my case "Botgirl Questi" – is the single essential vehicle for Transworld identity.
Through the consistent use of a name I can extend a recognizable identity across whatever forms I choose to take and throughout the many virtual platforms I inhabit. Although my avatar looks very different in Twinity, IMVU, Second Life and Twitter, my unique name allows people to connect the dots and recognize me in whatever form or world we meet.
So I suspect that most people are going to continue to use a consistent name within Second Life, regardless of the relative freedom the Display Names offer. My guess is that the extra names will be used more for fun, name accessorizing and pseudo-alting. Although the image isn't clear, when I peer into my crystal ball it looks like the Display Name change will eventually fade into the status quo mist of all of the controversial changes before it.
I'll leave you with this musical meditation on the fluidity of naming: