Jeff Walzer In my post i meant that if I create a brand new policy using the powershell cmdlet then it would create it with the proper name. If you already have an existing policy that has the Name attribute set as the Definition Id then it means it was either created thru the portal (how i did got confused when I was first testing), or via powershell omitting the attribute.
In your case I'd explore creating a new identical policy with the correct descriptive name and assign it to the same scopes as the one with the ID as the descriptive name. Then simply deprovision the old one. This is made a bit easier if you have initiatives as you can simply swap them out. Do keep in mind that if you have any reports/historical data you need to reference as part of reports/compliance audits then you'd need to document this change as it might be confusing someone who might be looking at let's say 2 yrs worth of compliance data to see the policy change all of the sudden.
If you are simply testing like i was then it's as easy as blowing away the old policy! 🙂