Ra,
Is it fun for some, yes, for others no.
Is a big icon above your head giving you id, range, rate of closure from over 4.5 miles away more realistic than no icons....absolutely not.
There was a reason they had those aircraft recognition cards, as there was a reason the allies painted on those invasion stripes on anything with wings (I know mainly from ground fire), but it served its purpose in the air as well, just as early in the war, the planes would have their camo scheme changed from summer to winter. You still want to attack from above with alt advantage, but at least now you can egress low, much like they did in R/L. The didn't cons upen up at each other from 1000 yds away as a norm.
IMO no icons does a fairly decent job, not perfect, but a better job of protraying R/L than what you are saying and the icons we have now. It actually does a better job of simulating air combat...the fights are closer in, the opponents need to hold fire to be sure, and wingman tactics are a must...plus the bounce is more of an option which is where most kills came from. As for the mustang being a silver beacon, I agree, but it also cuts down on the recognition issue for both sides, so if its 51's against 109's then if its dark, its marked. Friendly fire and the fog of war are there as well. No icons simulates that aspect of air combat, which was once the shooting began it was easy to look around and find a once full sky, now empty.
Here's the nice thing about AH's setup right now....there is the Main Arena for those who don't feel no icons is right, and the SEA for those who like the idea, right, wrong or indifferent.
I know when I'm in a Cessna 172 flying along, I sure the hell can't identify what kind of a plane a dot is from over 4.5 miles away, 8.0k yards (I'm talking small single engine planes), let alone its aspect, rate of closure or any of those things.
I won't argue with someone who says it just doesn't suit their style or taste, and I won't argue that the current technology state doesn't perfectly imitate R/L, but I don't think its as bad for simulating not just the flight aspect but also the immersion aspect as you are saying.
Maybe the middle ground (before technology catches up to our wishes) is a different icon system.
Cobra (off soapbox now, sorry)