No 1. could work if applied properly and doesn't just generate random letters, and No 2. might be good, because if they tell you their name, or they are important, you can know their name, and if you dont it doesn't show their name, it would help with bethesdas big attempt at immersion and realism. However, if they do have just
[Skyrim Citizen]s hanging around, it wouldn't be as fun and realistic unless they had remarkably different clothes, in FO3, the Megaton settlers all had the same sort of clothes, which is okay for a post-apoc setting, however in TES with alot more choices of clothing, it would be extremely unrealistic. Which I beleive is the point of all the NPCs being named, because you have to make it a unique NPC in order to give it clothes, so while you are at it they probably just add a name for immersion effects.
Oh, I disagree. People have names. There's no weight to killing something called, "Bandit."
I agree, when I kill an NPC called Bandit, it is less awesome than killing a named NPC who has an obvious identity and schedule.