Technically it's actually a security risk to have this but the size of the field limits the 'worst case scenario' (it's hard to weaponise it to an actual security risk, but we still get reports every so often that it is a persistent-type XSS hole that should be fixed, but it's because of the number of people who use this 'tip' that I can't just change it)
All groups need to have a regular textual name for all the places that a regular textual group name is needed (any dropdown, amongst others), and really what you're saying is that you just need a mod to change the way the thread and maybe profile displays the group's name.