I've found this happens *IF* you remake the character on a different account.
Account A: Create character named Toon1
Delete Toon1
Account B: Create character named Toon1
Denied
Account A: Remake Toon1
Accepted
I've done it several times. I think there's some sort of guard in place (intentional or not) that allows someone to remake their character on the same account without the risk of someone else taking their name.
However, if Kazzok was flagged previously for being inappropriate, then it wouldn't be able to be recreated.