Friendly Icons DO NOT disappear, only enemy.
At first, I did like the disapearing icon, but after flying a few fights on the deck, I have changed my mind.
I've got a 21" monitor and play at 1600x1200 32bit.
Even with those specs, I find it too easy to loose sight of bandits against the terrain, the colors just blend in too easily, much more than they would in RL.
At altitude, having the icon disappear is actually a help, but on the deck it is a hinderance.
I can live with it either way, but I would prefer a correction.