I don't see a scaling Issue. In general, it would allow "unlimited" names. If an app would use a prefix tag:

app.name

Example: leo.bob
peakd.bob

and so on, it would allow making wallets cheaper because name squatting would be "useless" and only makes sense for the "premium" wallets without a prefix title.

I think it would be perfect for apps or games that want to onboard thousands.

Because of the fee + limitation of stages, it wouldn't end up in spam IMO.

it can also work as a Pool and a "prefix/ suffix wallet privilege" can use that pool of Tickets for onboarding for some fee.

It would support Apps that want to grow on Hive.

About costs, I can't say anything about it. I have no idea how much it would cost to allow are more easy wallet creation onchain.

@gtg thank you for giving it a look :)