You're right on the first count and possibly on the second, yet I'll disagree on the 2nd and say it's just peace of mind. Not that my name or being or who I am is of any significance to anyone else - my data personal belongings mean jack shot about anything ... but I like to have that personal sense respected as such. There is a fine line saying something about somebody vs printing it ... I wonder where that all began? I see it as slightly the same principle ...
You want to know who I am ... ask me, and likewise vice versa.
You want to marry a woman, of the respect to ask her mother/father for her hand in marriage (if their alive, if not visit their grave and ask them)
You want to get reference you ASK others for their permission not simply name/number drop.
Would you state these above as paranoia? how are they different? basic principles

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The big deal is it's my name ... my birth-right, something my parents gave to me, just like my life (living life) and thus just as your name should be respected and pronounce properly whever you go like everyone else, it's the one thing you take wtih you EVEN after death! It's on your headstone, and remembered by your family, loved ones, and offspring.
You may not treasure your name and identity amongst strangers, but its no reason I shouldn't.
How often do you go into icloud settings once you've setup icloud on your phone? think about it, just how often?
- thus why did it need to be at the very TOP of Settings with your Name?
What is the real purpose of it being there?
Do you need to be reminded of your name, just like you need to be reminded of the carrier you're using with branding on all those other phones for the past 20yrs?
not a big deal to you but to me it's a preference I'm not happy with ... any changes I wait until I cannot have my shoulders overlooked. In the workplace EVERYONE is damn nosey ... it's the game of snakes and ladders.