And you don't believe His name is being vindicated as His Kingdom continues to grow, and the gates of hell cannot prevent it?
No. While it is true that God demonstrates the holiness of his name to us who fear him and trust him and believe in his son, God intends to vindicate his name before the nation.
Let me explain a bit more. God, himself tells us why the nations blaspheme his name.
Let's begin where I started my journey into this question: Romans chapter 2. During my study of Romans, I came across the following verses.
Romans 2:23-24
You who boast in the Law, through your breaking the Law, do you dishonor God? For “the name of God is blasphemed among the Gentiles because of you,” just as it is written.
Here Paul is quoting scripture, reminding his Jewish readers that God's name is being blasphemed among the Gentiles because of the Jewish people. The question is, how did the Jewish people cause the Gentiles to blaspheme the name of God? The answer to that is found in the prophets. In order to understand this, I need to give a bit of background information.
The Ancients were polytheists, believing in a group of gods, ruled by the strongest, and most powerful god known as "God almighty." Each region of the earth was associated with at least one god, who was in control of that area. His job was to protect and materially bless the people who lived in that area. All the gods wanted in return was to be worshipped.
Recall the Exodus account when the god, "Yahweh" fought the gods of Egypt for possession of the decedents of Jacob. He defeated the gods of Egypt and took a people out of that land to another land. When his people entered into the promised land, they made a covenant with Yahweh that if they would be a people for him, he would be god for them. If they obeyed Yahweh and kept his commandments, he would protect them from their enemies and bless them with lots of food, lots of animals and lots of children and they would live and worship in peace.
They did not obey, but remained a stiff-necked and stubborn people. So God sent them into exile, allowing the "gods" of Assyria and the "gods" of Babylon to take his people captive. Or should I say, this is how it appeared to the Gentiles. From their point of view, Yahweh was not able to keep a people for himself. He proved himself not to be God Almighty. He was unable to discipline or bless a people and keep them, allowing them to live in peace.
Now, to blaspheme God is to promote a lie or a falsehood about him. And so what was the specific lie or falsehood that the Gentiles told each other? Yahweh was not strong enough to keep a people for himself. He was not up to the task. He made a bunch of promises he couldn't keep. And he allowed other gods to defeat him. None of this is true, of course, but among the Gentiles, this is the lie they tell each other, based solely on observation. If the Gentiles are calling balls and strikes, it appears that Yahweh struck out.
We read about this in the prophets Isaiah and Ezekiel.
Isaiah 52:3-6
For thus says the Lord, “You were sold for nothing and you will be redeemed without money.” For thus says the Lord God, “My people went down at the first into Egypt to reside there; then the Assyrian oppressed them without cause. Now therefore, what do I have here,” declares the Lord, “seeing that My people have been taken away without cause?” Again the Lord declares, “Those who rule over them howl, and My name is continually blasphemed all day long. Therefore My people shall know My name; therefore in that day I am the one who is speaking, ‘Here I am.’”
From the perspective of the nations, God's people were taken from him without cause. It wasn't for punishment that he sent them into exile. It was simply that the gods of Babylon were stronger and more powerful, which is the lie they tell each other. The Lord, through Ezekiel, gives more detail.
Ezekiel 36:16-21
Then the word of the Lord came to me saying, “Son of man, when the house of Israel was living in their own land, they defiled it by their ways and their deeds; their way before Me was like the uncleanness of a woman in her impurity. Therefore I poured out My wrath on them for the blood which they had shed on the land, because they had defiled it with their idols. Also I scattered them among the nations and they were dispersed throughout the lands. According to their ways and their deeds I judged them. When they came to the nations where they went, they profaned My holy name, because it was said of them, ‘These are the people of the Lord; yet they have come out of His land.’ But I had concern for My holy name, which the house of Israel had profaned among the nations where they went.
In order for God to answer this challenge, he must bring his people back out of exile, place them in the land again, bring other "gods" against them, and defeat these other gods in the presence of the nations. In addition, they must be a people for him, keeping his commandments, fearing his name, and remaining loyal to him the entire time. At the same time, he must be a God for them, protecting them from enemies, blessing them materially, and pouring out his spirit on them all.
Only in that way can God restore the holiness of his name.