But they do.. Most orthodox congregations don't recognize Reform conversions and have little to do with their rabbinate, in general. The big Reform issue nowadays is getting Reform Judaism set up in a big way in Israel, but theyre not making much headway, and have little sympathy from the Orthodoxy here
Many of the "liberals with Jewish last names" will be virtually assimilated in the larger body politic two generations hence, so this "anomolous situation" should generally take care of itself, with time..