Although WikiNames have limitations, the constraint they impose is helpful in a few ways.
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Syntactic constraints encourage creative thinking. Why do poets write sonnets and haiku? Because working under artificial constraints forces you to think better. (See DouglasHofstadter's LeTonBeauDeMarot. See also WikiWordsAreConcepts)
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Constrained names reduce the need for guesswork. When you're writing or editing a WikiPage, you don't want to waste time wondering whether you should say "WikiNature" or "Wiki nature" or "Wiki-nature" or "Nature of Wiki" or "The nature of Wiki" or what. So, in practice, you're going to guess. Which means that half of all DanglingLinks will probably be gratuitously broken. It's like the WikiNamePluralProblem, only worse.
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Short names help concept formation. Someone said somewhere that WikiNames create concepts. I think that's an important insight. It's not just the fact that they're short that helps WikiNames to get associated in your head with particular ideas, though; it's also that...
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Typographical distinction helps instant recognition. Sure, links are likely to show up in blue (or whatever) anyway. But the fact that they all have that WikiCase look helps.
None of this means that the existing scheme is perfect. There might be ways to make it better. But don't underestimate the possibility that ThatsNotaBugItsaFeature. Any possible change should be considered in the light of issues like these.
Over use of WikiNames can lead to WikiNameInRealLifeSyndrome. See also WikiNameDisadvantages.
The advantage of WikiNames is that it brings about distinctions and definitions of concepts and ideas that are valued by the namer. "To describe is perhaps to value"
-- DonaldNoyes