This feature imho would worth a key (or a shift+key) which could turn it on/off during flight. In this way we could turn it on anytime, then off when too many ships are around and the names cover some important info.
The problem, if you want to call it that, is that this feature changes the dynamics of gameplay. As an example, if you were to be attacked by a group of many pirates, with this enabled you would be able to immediately know which targets to pick first, while without it you would have to identify each one. Having the feature enabled buys you time at the start of the battle, so we should not really go ahead and enable it without making it cost something in exchange.