but the full name? wtf is up with that?
Because if they allowed all that information to be changed, it would make their policy completely unenforceable.

when people get reported, the full name is the first thing that blizzard checks, right?
Correct.

if i were to use the 'recruit-a-friend' link with my new accounts i go out and buy, would my primary account get the benefit from the free months once i make the first payments on each account?
Yes

I've never done that myself, so I defer to others for more details, but there are lots of people here who have done exactly that, and I'm sure you'll find lots of search hits.

This one for example