I agree, Wlfgng. Ever since the AH Alpha I've thought the icons were too big. Personally I'd like to see the Bish/Knit/Rook identifier go, as that takes up a lot of real estate on my screen without much benefit.
Three numbers under 1K also seemed like a lot in the early days, but I can appreciate just how much information such a system imparts as to closure speed rather than an abbreviation (3.5 instead of 350 I mean). The rate at which the numbers change gives a lot of information...
The "K" signifying 1,000 units is kind of big, too, I wonder if it just couldn't be dispensed with altogether: If one doesn't see three numbers, then one knows the con has to be over 1,000 yards out and just a 1.0 and 1.5 would be enough...
I'm in the camp that thinks icons are necessary, but don't think they have to be nearly as big or informative as they are. In AH and the MA, we
need a plane identifier, since the same sides are using the same planesets, and we can't rely on nationality to give a clue as to plane type. What
could be done, however, is to experiment with information according to range (nationality first -- by colour only, not the graphic -- then within a certain range plane type). Range need not be strictly numerical, either, but could be by another method such as a ranging bar, or a fading/colouring technique.
Icons are always going to be a controversial issue. Go to any flight sim with an online component and you'll see people arguing about them and their implementation.

As I've stated, they're necessary at some level, but they needn't be nearly as dominant as they are in currently in AH. In some fights the whole sky is just a mess of icons, and completely dwarf the planes themselves. It's a game of icon tag, rather than plane spotting. Since we have detailed in-flight radar for both position and friend/foe indication, it seems like overkill.
I don't think it's realistic to just turn off enemy icons, either, though. While it helps a lot with IFF, given the inherent limits of computer screens and hardware types, we just don't get realistic info about ranging and plane type without some sort of icon system.
Making icon display size user configurable (or even a custom checklist of what's displayed on bandits) certainly would seem like a good feature in my book. I'm not concered about what my icon "gives away" about me to other people -- I'm plenty happy with is as it is -- as I am about making my own views less full of neon signs and more filled with terrain, objects, and planes.
Your mileage may vary.

Cheers,
phaetn