In practice airlines are fairly lenient concerning misspellings, out of order names, missing diacritics, etc. The name change fee applies mostly to changing the person who is flying.
— #39, Falsehoods Programmers Believe About Names
https://www.kalzumeus.com/2010/06/17/falsehoods-programmers-...
You continuing to assert that his name is in some way not real is incredibly rude.
The mere fact that you're reading about these cases here should be good enough of an indication that they're indeed not seeing it as a waste of time.
If Sabre has enough money to send Bill Clinton and Mark Ronson to Hawaii for a glorified frat party [0], it has enough money to tear through all but the best-funded legal challenges. (You'd think I'm joking. Nope.)
[0] https://hawaii.fcglobalgathering.com/a-huge-global-wrap-up/
Having said that it clearly sucks and is super confusing and annoying to affected people, especially given the horrendous prices some airlines demand to change the name on the booking etc.
It seems like a small thing and I'm hypothesizing but I'm pretty sure no one sane at time will risk changing this, deploying to prod and hoping that nothing breaks. There's hundreds of airlines and thousands of travel agents involved.
The rule about having a title after the name without any separator is clearly a bad design, but now you have decades of systems (and hacks) built on top of it, you can't just change it like that overnight. In the same way as you can't change how certain broken web APIs work because there's too many websites that rely on that broken behaviors.
Yet another, more local and fixable issue is the airline app which doesn't allow 1-letter last names. This is the same as the apps which helpfully validate email address and reject many valid emails. The best regex for validating emails is /@/. Anything else is probably broken.
--
Another big issue in the industry is that PNRs are 6-digit long and sequentially generated over time, which is a security problem, as demonstrated by CCC a few years ago. If you know someone's name and that they're flying on a given date with a given airline, you can try to brute-force-guess their PNR number and get their personal data or even change their reservation. Again, this is so rooted into the systems that it can't be changed without a massive industry collaboration - probably a years-long project with $$$ cost. For now the GDS have anti-bruteforce mechanisms in place, but it's not good enough solution IMO for a determined attacker.