Perhaps a lack of imagination? I have had little problem naming my characters. Also, you can use a first and last name.
To add to this post, what I did was take a name from one of the NPCs BootySweat linked, then generate a name from the TR name generator. Mix and match a NPC name with a generated one, then tweak it for flavor.
Take advantage of the fact you can have a space(s) in your name and research fully what characters can be used. Also it is wise to create a lore friendly name. You will be remembered through your actions not the spelling of your name and the typical non-rpg names will be heavily frowned upon by many in TESO.
I personally would have preferred our account name showing at all times in game so names do not need to be unique. It worked amazingly well in games like Champions Online and account based friend, guild and ignore lists adds incredible accountability to the game. People whine about it here but they truly do not know the benefits.
I suggest researching names from ethnic origins from ancient times which influenced your race in game. Some of the meanings behind the names can be quite interesting.
You can have up to i think its 5 spaces in your name (someone correct me if i'm wrong) So you could name yourself Arabor Robara if you wanted or Arabor Bubble Gum King
IIRC, I think it is optional now. Way back, it was only a first name and last name which created a ruckus for people that want a lore-friendly name or just a one-word name.
I don't think you can use space or special characters consecutively.
It seems my name is a Redguard name, without knowing it. I was going to roll an Orsimer, but being a person who respects lore and roleplay, i will become a Redguard instead. Its the same Alliance anyway.
Cryptic fixed this problem years ago, shame ZOS never learned from them.
I had no problems getting names for four characters, try not naming your character Darth Gokuverine.
My Breton was named Merci Beaucoup
(French for 'thanks a lot')
http://thenoobcomic.com/index.php?pos=3
Legolas [Name Taken]
Legolaas [Name Taken]
Legolass [Name Taken]
Legollass [Name Taken]
Legolllas [Name Taken]
Leeegolass [Name Taken]
Leegoolaas [Name Taken]
LLeeggoollaass [Name Taken]
....
Ohforf
[Name Taken]
We were having a debate about names in another MMO forum last year, someone was complaining that all the good names were taken, most of us replied that it wasn't hard to come up with a good, original name. One poster replied: "I don't want an original name!"
My alts are just different members of the same family. Spaces make that easy.