Banning via cryptographic hashes are honestly better for this, even then. Yes, it's flawed, but I know of nothing better. Name filtering is just a mess. A long time ago, I read up on soundex/metaphone, Levenshtein distance, etc. and wrote what was essentially a search engine for names. When I tried to make it loose enough to catch most common typos, a search for "the jerk" gave my boss as the top result. That was not planned and he was never once a jerk to me.

That said, please understand that I do sympathize with you about artists getting screwed. I just don't want to see solutions where we merely pass the buck to someone else without getting at any of the underlying problems. Frankly, I believe that the solutions lie more along the lines of making sure that artists get their cut, rather than restricting who can listen to music and how. But I certainly don't have all the answers here.