I agree with Kruel. The current implementation is somewhat archaic and not conducive whatsoever to actual competition. It actually deters competition and allows players to fly anonymously.
Think about this: When was the last time you watched a football game and none of the players wore their names on their jerseys? When was the last time you watched a basketball game and players names were replaced with their team name?
It's quite ridiculous to think of any modern, competitive medium where players' names are obscured until after they've been beaten. In fact, in some highly professional, competitive games, like poker, a players' name is the single most important aspect of competing with them, as their playstyle is uniquely tied to their personality. The same goes for air combat.
Of course, there are several arguments against it, and I feel that each one can be addressed logically:
Argument against: "Oh no! We can't enable names or people would run!!!"
Answer: People already run and they don't even know who it is they're running from. Turning on nametags would reduce running, because, arguably, the running pilot would be more apt to turn back and engage pilots they feel are in line with their skill level. Put another way, running is already as bad as it can be - turning on nametags turns someone who runs 100% of the time into someone who would only run when they feel they might be bested by X player.
Argument against: "Oh no! Turning on nametags would make people target noobs!"
Answer: You can already mostly tell who the noobs are based on their flightstyle. But even then, say that you don't want to kill noobs - say that you would prefer to avoid them. With nametags off, it's much harder to identify them until you've engaged them and they start flopping around, wasting your time, their time, and ultimately harming their gaming experience as new players.
Argument against: But real WWII pilots didn't have digital nametags turned on!
Answer: No, but they had their names written on the side of the aircraft and many had custom/unique paint schemes or markings. Eric Hartmann, for example, had his plane marked with a black tulip that was instantly recognizable. Many pilots ran when they saw a 109 bearing those markings, as they assumed it to be him. Nametags are simply the most practical, straightforward way to emulate this.
There are several positive arguments for nametags:
Argument for: Turning on nametags allows competitive players to know who they're fighting, drawing on prior experience with that individual and cultivating competitive play on an entirely new level. It would allow you to know who you're fighting, regardless of win, loss, or draw. You no longer have to worry about picks or vulches preventing you from seeing who actually killed you (or who you maybe failed to hit).
Argument for: Turning on nametags allows for reputation. Instead of players seeing a red dot, then having to check scores or ask on 200 to identify who their opponent was, they would be able to see for themselves. If that Mustang who fought 4 on 1 managed to outfly and get away without downing anyone, people can see them and salute them. If a fighter saw incoming bandits and bailed to avoid being killed, it's obvious who they were. It builds reputation, plain and simple.
Argument for: Turning on nametags allows for more accurate target acquisition. In a real dogfight, you have human eyes that can see fighters 6+ miles out, or radar that can positively track your primary target. In Aces High, you're limited by the nature of computers and, unfortunately, relatively dated graphics. It becomes very, very easy to lose track of which P-51 you're fighting when there's literally 3 or 4 of them around you. With nametags on, it allows you to track your target without losing them due to game mechanics that would be a non-issue in real life.
Of course, this would only apply to the MA, or arenas where it's appropriate. Arenas where anonymity is needed (such as competitions) could remain in place with nametags off.
I personally would LOVE to see nametags implemented, as I think it would breathe life into the game and spark back up a spirit of genuine competition that is much needed.