I have always preferred having NPC names turned on rather than constantly mousing over everything on the screen to see what I can and can’t interact with. For players like me, it would be great if we could display the names of NPCs with some practical use — merchants, trainers, story characters, even named NPCs with dialogue trees for lore purposes only — without having to fill my screen with dozens of anonymous Citizens, Locals, Blood Legion Soldiers, etc.
I realize this would take a little work, probably requiring all NPCs to have a 0/1 value determining if the game would display their names in the UI, but it would sure make the game prettier and less cluttered for those of us who like having NPC names on. Those “ambient” NPCs could still display their name on mouseover and allow F-button greeting as they do now, it just wouldn’t be filling the screen with names.