In the last (real) day or so, I've seen at least two or three novices running around with names like Xxcradlexx, Xxkillerxx, Xxnoobsaucexx and Xxhyperdragonkingxx (okay, I made up most of those, but the point still stands). After testing a bit, it appears to me that, while we block names like Noob (but not Noobs), Leet and Pepsi, we do not block some other obviously inappropriate names, especially xxxx and bad compound words (Leetpepsinoob, Faineventru). Is it possible to improve the name checking system enough that it can detect, if not combinations, at least stuff starting and ending with xx?

No, because I totally plan on playing an alt named Xxerseaxx.

Pronounce it.

Is it pronounced the same as Xerxes?

Most names that are banned or blocked are added manually into the system when they're seen. I'm sure those who do so also go for similar names to prevent it from coming up, but it's difficult to account for everything.

Shur-sea-asjj (soft j)

I don't think it would be too hard to block stuff starting and ending in xx, though. And since no name starting and ending in xx, Xxerseaxx notwithstanding, is really appropriate, it might make sense. It would save the guides some work, too.
Coincidentally, or perhaps not, the name Faineventru is now blocked. But Eventrufain isn't. Somebody is reading this thread.

It's impossible to account for everything. What you're asking for is that a coder spend time coding something that probably isn't essential - I, personally, think our guides do a fabulous job weeding out the bad names that need a change. I do not, again, personally, see the need for recoding it (Especially given that it's old code, I bet, which I understand tends to be a nightmare to change around). But that's also just me.

It probably isn't essential, and the guides do an excellent job of weeding out bad names (although Xxcradlexx is still there). It probably just bothers me unnecessarily to see novices with names like that. It is pretty entertaining to type QW and see "somebody, somebody, Zzzooopp" though.

What you should realize is that probably a third of the players we have seen in the last year are Runescape/Evony members and aren't too worried about the dreaded arpee. Most of them, if mature enough, understand that they might need to change their name to "fit in". The admin are already busy working on ten tonnes of crap, they can't code in a perfect name filter. It's not going to ruin your experience in Lusternia to have to put up with newbies who aren't used to the place and need to learn a bit. Srsly.

On the subject of names, I've had past other characters I've created that ended up deleted through inactivity or what not most of them incredibly insignificant low level affairs.

What concerns me is that it appears once a name has been used period, by any person it is forever blocked from use again, even if said person suicideded and deleted their character or it was wiped from the system.

This is very annoying as honestly when I go to the trouble to in earnest try to start an alt I have to come up with some new crap for balls name because the selection becomes slimmer and slimmer over time. Maybe I'm just picky. Maybe I'm wrong. But there's tons of appropriate names not currently in the game that are not allowed to be chosen it appears.

Yeah, that's sort of my fault. 5 minutes after Sojiro became Shuyin, I made a Sojiro character using his old name.