The purchase of a site known as "Avatars United" was recently announced by Linden Lab as... well, I am not precisely sure quite what the point was but it was a Great Thing nonetheless. Apparently the aim was to make sure that people with existing identities on the Grid, and therefore on Grid-Related Websites such as the Linden Blogthing, could also be represented on another random site for no apparent reason.
With that in mind I have registered all of my current Second Life identities. I warn anybody who does not wish to know my current "alts" to look away now.
Well, I did not wish to say so explicitly, but any "Desmond Shang" that you might be dealing with who says that it is not obligatory to buy everything from Ordinal Enterprises in order to enter Caledon is a fraud and not in my existing group of friends - but that fake identity will isolate itself.
Q: I have several avatars on several games. Can I register them all?
A: Yes. Currently Avatars United has no limit on avatars to any given account.
Q: Can I register avatars from games I am not currently playing?
A: Yes, as a matter of fact we hope you will. Do register avatars from games you previously have played and you will allow old friends you previously played with to find you.
Q: Are you verifying that all the posted avatar information is accurate?
A: No. Avatars United is mainly a community for existing groups of friends and as such we believe fake identities will isolate themselves. (Frequently Asked Questions)
The fact that one might apparently register not only a name that has nothing to do with one's actual name, but in fact, a name that has already been registered, I'm sure is just a feature.
(Yes, by the way, it would be trivial to have an inworld check on identity, whereby an avatar confirmed that the "Avatars United" account was indeed theirs by touching a box or some such - and that would just be for residents, anyone connected with LL would no doubt have even more tools available.)
Is the concept of "identity" even thought about, let alone appreciated? Signs point to no.