This is a change that serves to help new players.
Great. Then make it an option, or as other's have said which I also like, only on the map and/or through the spyglass.
Also, I wouldn't know the name of a ship with it's name on the side unless I had line-of-sight on that particular point, with which I'd then have to remember which is which. Who doesn't want customization though?
I'm on the side of the UI clutter to be clear. It was a zero issue before to communicate different targets to your allies, even if they are the same ships. This reminds me of when people wanted the goldfish to be a different color because it was somehow hard to tell if it was on red team or not.
And yes it is worth some attention, because if nothing was said, it would be assumed we all loved more UI shapes and letters to be on the otherwise nice screen. If we plan to add this stuff for new players, then it would be great if it were an option, or as said earlier, scaled back to only on maps and/or through spyglass.