I find it a bit strange that we can replace files with the same name but if we want to create a user template (project) with the same name as another existing one it will refuse to replace it. I am genuinely interested to know the why first. When that is done, there is the possibility to go forward with this simple proposal:
Add a button (a rework of the dialog's content might be necessary to effectively communicate this change) or alternative to replace a user template project with the same name.