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The idea behind it is to preserve traditional Swedish names, rather than end up with a country full of Britney Jansens and Paris Larssons. Of course, in college I knew Swedish girls names Charlotte (Lotta), Maria and Jenny (pronounced "Yenny") but these were all on the list (or maybe there wasn't a list yet.) American and English culture is a constant "intrusion" there, so this is one way to preserve Swedish culture.
That said, I would fully support a naming policy in the US forbidding inventive spelling only. You can name your kid Apple, just don't add any extraneous Ys, silent letters, or apostrophes to a name like Ashley.