I wonder if this can cause security issues. In particular, suppose you can create an arbitrarily named file in a directory. What if there's a service running that does not handle this correctly ( interpreted bash script that is ) - what unexpected behavior might one accomplish by naming the file weirdly?
As a benign example, consider "ls". If you create a file named "-la", then an "ls *" that tries to do a 1-deep recursive listing is going to print the extended listing with permissions and including hidden files, interpreting the "-la" as a flag instead of a file name.