Hi all, this is my first post on AH BB, be patient with my english, but this topic just induce me to say something about...
I agree with your statements, MarkVZ, no more a/c type and distance on icons for me.
Moreover, IMHO present identifiers are too big, so when I fly in crowded sky, I see a lot of red and green icons, labels and numbers, instead of planes! I find this very annoying (BTW, is in AH possible to turn off icons?).
I know, it's unthinkable to dogfight without some sort of Friendly-Or-Foe identifier, because screen resolution is far from real life and it's really difficult to identify by shape a plane that's not flying very close to us, but on the other hand we can use zoom to help us in such case.
So, a little red or green (why 2 colors for 3 countries?) simbol, like a dot or a square, near the plane could be sufficient.
An improvement to this solution can be a fading icon, due to the distance from us and the observed plane (as Sp00k suggests) and, for friendly planes only, a same effect on pilot ID, starting at very low distance ( it's more realistic to identify first the plane and then the pilot).
--Grifo--