In recent history I had to record donations from individuals on a weekly basis, many of whom were of Asian descent. It was frustrating for me when they would spell their names inconsistently from week to week, sometimes using their maiden name, sometimes their current name, sometimes surname first, other times surname last...I kept having to check their addresses to ensure the records were accurate.
But I do agree, legislating that people adopt a more "American" name to conform, takes something away both from their freedom and their cultural heritage. As a libertarian (small L there), I believe governments should have as little involvement in peoples' lives as possible, and concentrate on real issues instead.