I'm not sure if there would be any actual ramifications for doing this (I'm still rather new to the game), but I think it's time that you allowed people to delete characters so names can be reused.
I ask because I'm obsessive. I'm also one of those people who like to make multiple character, or re-make characters with the same name. H&H's current system doesn't allow this, and it's literally driving me up the wall.
If a character dies, you can of course become his descendant. Allow us to delete this in case we want to remake our character with the same name. If you already have a character that is a descendant of the original, THEN don't allow them to delete it until the descendant is also deleted. Or allow us to delete the original, which will also delete the descendant (Back to the Future!).
Seriously guys, it might not bother you, but I'm a bit OCD and it's making me crazy. My first character is using the name of my first fantasy game character (from EverQuest, I was born a bit late for D&D) and it kills me that I can't use it again on my account.