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Move names have increased as well, to 16, as evidenced by Parabolic Charge. However, I don't think there's any conclusive evicence as to character names as yet. It is worth noting that the seven character limit has been broken by numerous NPCs, such as Shauntal and, as recently announced, Professor Sycamore.
I would prefer to be known as BlackWaltzTheThird, or just Waltz for short. Got Animal Crossing? Join today! http://www.esoevil.com/forums/index.php
I am actually surprised that people who keep citing minor game changes as "huge innovations" to the series never mention the increased name limit. While it doesn't affect gameplay at all, it's one of the things that I'm most excited for.
Hey man, LlamaGuy did encrypt the passwords. With what? ROT-13? -CJayC