Custom anonymous user name isn't working

Setting the Anonymous User name to something other than "anonymous" via Home » administer » configuration does not change the value on the web site, although the variable "anonymous" is set correctly in the variables table.

The problem is that when in the users table, the user's name with uid = 0 is "Anonymous", but the format_name function in common.inc doesn't acknowledge that. It expects $object->name to be NULL.

if ($object->uid && $object->name) {
  // ...
} 
else if ($object->name) {
  // code always executes here for Anonymous users
}
else {
  // this block is never reached for Anonymous users
  $output = t(variable_get("anonymous", "Anonymous"));
}

Here is the fix i purpose, but i don't know if it is the best solution. That is why i am posting it here.

if ($object->uid && $object->name) {
  // ...
} 
else if ($object->name != "Anonymous") {
  // code executes here for non Anonymous users
}
else {
  // ...
}