I think there are a few things that I believe to be a necessary part of weapon names that haven't been mentioned:
I - Naming a weapon should lock in its abilities. This can be done in a number of ways: one is to fix all the wyrs just as they are, cutting off any posible weapon progression; another is to lock the abilities in a set path. So for example a flaming sword with an agility bonus could get additional fire damage and increase its bonus to agility, but not start flying about on its own. Additional powers *could* perhaps be added later on, but there has to be at the very least
All this is because famous weapons become known for something. If one names a weapon and still has the ability to add or remove wyrs at will... that (to me) wqould go contrary to the notion of fame. "That is the Blade of Yama he wields, challenge him at your own peril." "The Blade of Yama? What makes that anything more than just a sword?" "Well.... last week it was a sword that would grant anyone powers inhumane against your race, but I'm not sure what it does today.... it's just a cool name really, alright?"
II - I think the Diablo II system of having named wyrs and having them combine into words *sounds* like a great idea, but I spent far too many months in that game to be able not to suspect that there will be a "best" combination of these, and every sorceress will run around with the same staff of uber-flame skillz.
III - All the weapons resembling the template of "Sword of Somedude" only come to truly embrace their identity when "Somedude" no longer has it. One idea to create something like this is having unique quests that give the person to complete them a unique weapon like "Blade of Tedd E. Bear". Once it is completed it comes out of the database of available unique quests. The sword stays with the person to complete the quest until s/he gets killed. When that happens, two possibly things can happen:
(a) if the person is killed and no other player picks the sword up in x number of seconds, the sword vanishes from circulation and the unique quest goes back into the giant slot machine of quests a person could end up with
(B) if the person is killed and another player picks up the sword within x number of seconds.... well.... finders keepers. This way there could be unique weapons, which will build up their own history and promote player interaction (build up alliances and grudges and all kinds of other neat stuff).
That's my point of view of named weapons.