A small step in the direction of common sense, following up on [1] this story. From [2] The Register, with thanks to Richard:

Yahoo! has reversed its decision to stop people registering Yahoo! IDs which include the letters "allah".

The Reg was contacted yesterday by a reader - Ed Callahan - who was having trouble registering his mum - Linda Callahan - for a Verizon email address - provided through a Yahoo! portal.

But Yahoo! got in touch with us this morning to say it is now accepting Yahoo! identities which contain the letters "allah". The Callahans will be overjoyed.