I like this idea... kinda.
The lack of icons would completely change the game in the air. If you mean the removal of all of the icon, distance included, you wouldnt see anymore spraying and praying at D1.0 - which would be a good thing, but think of all the whining.
On the other hand, I might like to try the idea of flying without ID icons (for everyone - just shutting them off put you at a disadvantage to everyone else). It would aleviate the perk plane gang bang tag problem and help with the immersion factor a bit.
Im not sure however, if it would make the game more or less fun - maybe we could impliment it for a week or a few days and see what kind of reaction it gets?