It'd be cool if it didn't suggest names that very obviously don't sound good in (at least common) non-english languages, eg., I got "culojoo" as a suggestion for 3 syllables, which won't sound good in Spanish at all.
I'd say make a dictionary of bad words and their syllble sounds. Then disallow close Levienstein based words....
Regardless, if you take the short keywords and blacklist them by approximation with curse words from several languages I think it would be really hard to get something at all.
Nevertheless, it's a pretty cool idea! :)