I called leapster customer service to ask them the same question and they told me there wasn't a way to delete all names from the leapster 2.
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Yes, all leapster games are universal. They work in all the the leapster systems.
according to wikipedia 'All previous Leapster games play on the Leapster 2, and all Leapster 2 games play on a Leapster, though logged data can never be uploaded and any earned rewards unlocked.'
Yes, you can. Originally you got 1 starter game and 1 demo game from Leapster connect. But I just got extra 11 games from here: leapster-2.blogspot.com All you need is to make sure that your Leapster 2 have SD Card for at least 64MB and make sure that your Leapster 2 can connect to PC using LeapFrog Connect.
To delete a player profile, go to the player profile screen and press and continue to hold down the following buttons in sequence: Home A button Left arrow Then, touch the X icon that appears at the bottom of the screen and follow audio instructions. Note: You can only delete a name when all three name slots are filled.
Instead of buying Cartridges in the shop, you also can get more downloadable games for Leapster 2 here: leapster-2.blogspot.com