Oh, FFS®, LL©®™!
I agree, there is no reasonable way they're going to be able to enforce this. If the purpose is to give LL recourse in the event of blatant abuse and/or misrepresentation, I can certainly understand. But if it comes down to targeting individual users, LL will only end up punching itself in the eye repeatedly from a PR perspective. The last thing you want to do is alienate the very base who represent your bread and butter, and who make possible your viability as a publicly-traded company.
As for the two-noun policy, I'm guessing this means calling yourself "the SL Jesus" is forbidden, but being "SL Jesus Christ" is acceptable. (See also "SL Farmer" vs. "SL Ad Farmer".)
Where's Jon Stewart when you need him?

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