In my opinion the only good thing it does is to create copies of already existing communities, so basically people tend to follow one community or the other and it divides the people who could be active.
If you want to create a community that’s similar to one and for some reason you don’t want to be a part of it, find another name, if you can’t find another name, create your own instance. So if Lemmy is federating now we could have /c/worldnews, /c/world_news, and the same applies to every other instance that decides to do the same. In my opinion this only segregates people.
The same applies to uppercase letters, which Reddit uses but luckily Lemmy does not, imagine how many copies of a community could be created if you use both.
This applies to a username, not to a community, unless you want to create a community for the Super Bowl in which case it’s already obvious because the community name, not the community address, is “Super Bowl”, and all of the community like the description, banner and icon are related to the Super Bowl.