Maybe this would be interesting to try again. Perhaps if we lowered the chat bubble's position so they re visible most of the times and implemented a speaking animation? There has also been a suggestion of changing the intensity of letters on the chat window according to your distance from the speaking person, I think there is a PS mod somewhere too. All this could make hidden names functional.
There are more things to improve this, as writing race and gender instead of "someone" or allowing each player to give a personal color to their writing on the chat window, example, names appear always in green but my speech appears purple, yours is red, someone else's yellow etc, although said colors should probably differ from the ones used on whisper, guild, system and other channels.