Hadvar asks "Who are you?"

And you respond "Tiber Septim" or "Talos"

You'd think they would get offended or think your mocking them.

But nope.

I love you, man. Keep trollin' them nit-picky subjects ;{D~

I assume because in the kickoff meeting for The Elder Scrolls V: Skyrim, when the question was asked "how much time should we spend making each of the hundreds of characters in the game respond to any of an infinite number of funny/odd/historical names?" The answer from the lead developers was "none."

Hadvar's with the Empire, he's not supposed to treat Talos as anything special.

The Stormcloaks don't react either.

This issue really isnt worth the effort...

Just the same reaction as you get in any other game where you can name your character.
MMO and other online is an exception