True, perfect merging doesn't exist. I just think that replacing one file with two files that have different names isn't the best solution to letting me deal with the problem.
Well, obviously we want some copy (hopefully, the best copy) of the file to be available at its original name without having to use a Dropbox client or visit the Dropbox website. So I guess what you're looking for is an additional interface (website or client) which would allow easy choosing or even diffing following a conflict? I'd certainly support that, as I've had to diff myself in the past.