Blizzard have to do something about this problem, its really annoying siting for 1 hour at the character creation screen trying to find a name that is not already taken.. And the most frustrating part is, the names are taken from toons that are below lvl 10..
Inactive chars that are below lvl 10 should have expiration time! That will solve this problem. If you want to keep that char from expiring then let him keep few gold in his pockets, thats how you can keep your bank alt or a name that you want to keep for future alt..