As valuable as Wikidata linking can be, names are so central to important OSM workflows that it would be very disruptive for OSM to get out of the naming business. Most communities haven’t even felt comfortable enough to delete ref tags from roadways in favor of route relations. On the other hand, some ancillary keys like brand:wikidata and flag:wikidata are less entrenched in OSM workflows, so there could be somewhat less attachment to their non-Wikidata variants.
This technical limitation is specific to Wikipedia, but it does not apply to Wikidata. Wikidata only requires any two items’ descriptions to differ if their labels match. Anyways, technically labels are just that – convenient labels – whereas the most proper representation of an item’s name is a name ( P2561), native name (P1705), or similar statement.
Last week, I spent some time mechanically stripping out Wikipedia-style disambiguating suffixes from Vietnamese labels of tens of thousands of Wikidata items about cities and towns, mostly in North America and Czechia, intentionally causing thousands of items’ labels to become identical to other items’ labels. For example, this Minnesota township’s label shortened from “Xã Arthur, Quận Kanabec” to just “Xã Arthur”, like another township elsewhere in the state, with aliases and descriptions to help users differentiate. This should significantly clean up the map for Vietnamese users of OpenMapTiles, Mapbox, and Google Maps, each of which relies on Wikidata for place labels in various languages.