Alright, I voted "Awesome names are awesome," because they are.
However, not all names that aspire to awesomeness ever actually get there. It is entirely possible to try too hard.
As for my own characters, I have been all over the place in the range of complexity from simple names to ones that "sound like a fantasy name" to ones that "I could never pronounce that in a hundred years." I eschew umlauts, but I do include "ae," "oe," and "ue" spellings when appropriate.
Sometimes I get carried away.
Gnomes are supposed to love having lots of names, right? How about, "Gildan Elroy Hyssop Winesong Imphfinning PoDandu TaVanish LaTortoise?" (He could call himself "Gilroy" by making a portmanteau of his first two names; but some in the party might call him "Gilderoy," and that would be detrimental to the seriousness of the game.
)
On the other hand, a human named "Buxton Burfield Sedgwick Thredony Hartnell Smallege Rudgwort Ridgeway Rounser" would clearly be a case of trying too hard.
I'm still designing a putative elf bard, retired from adventuring, who is currently named "Aeonas Aubano," which is supposed to conjure up reminiscences of Aesop and Leonidas and Oberon, but I still think that looks a bit stilted. (Needs more work?) At least I didn't name him "Ubbniyart Mibbnade," but I did
type that moniker in while I was designing him. . . .