I think there was restrictions in nip-01 at first. But it probably doesn't make sense anymore
If the username doesn't have restrictions then should we remove the display name?
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I don't remember any restriction in NIP-01, so I would safely remove it.
Display name has always been controversial, actually it does not make much sense, in fact I didn't include it in Nstart.
A lot of clients also started to deprecate/remove it.
what is display name?
It's definitively an error without much sense.
The presence of both the "username" (which, unlike on other platforms, is not identifying and not unique) and the display name doesn't make a lot of sense, indeed, and I don't know why it was ever a thing.
However, you are free to set one and not the other (I think a client should display whichever one you di did set) or set both to the same value (which I see many people do).
I think it makes some sense to have both fields, although it may be confusing, because people can set them to different values: a short, one-word original nickname as a "username" and a longer, possibly less original, name as a "display name", which may be your real name (if you are not anonymous). I believe there's something similar on IRC.
Clients can display one or the other as the primary name for a user, depending on the style they want to have: you want a HackerNews feel? Show usernames. You want a Facebook feel? Show display names.
For example, my username is "Apsie96", but by display name is "Valentino Giudice", my real name. There is no rule to follow and I could even have swapped them, but I think it's better this way.
While I might have opposed the double field, for essentially the same meaning, I'm actually not against the presence of display names for this reason.