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I had other players' names turned off for a while, but I turned them back on just so I could differentiate players from background NPCs (who might have amusing dialog if you stand near them). Then I made everyone else's names gray so they wouldn't stand out, which worked fine until I started doing Eureka and actually wanted to be able to differentiate who was dead so I could raise them.
I like seeing the clever names other players come up with. I have an alt who is a cosplay character in progress (name and all), and I like to see other people who do the same. I love the social aspect of this game. Though I might try your technique one day if I'm Role-playing or feeling particularly immersed in the story and the world.
Side note: Did no one else hear Phil Collins singing the title of this thread? No? Just me... okay then. I'll see myself out.
I was just about to post what Laurtias said. I love to see other people's names in case they're amusing or something I can connect to. In fact, I met one of my best friends on FFXIV because he had the name of a character I adore and I messaged him to tell him so! If I had hidden names, I might never have met him.
That's certainly an interesting way to look at the game though. I might feel more immersed if I did that, since it may make me "forget" that everyone is playing the game, same as me (and therefore they are all the WoL on their own screens!).
I only have names showing for my friends, and when I’m in a party/24-man for party/alliance members. Just because I dislike the clutter on my screen (I have slight OCD). I play on a laptop, so I already have a tiny screen as it is (15-inch). I don’t really do it for a more solo-player game experience. I like seeing crowds in the game, even if I don’t have names visible. Makes the game feel more alive.
I do enable all names when I’m inside Eureka so I can see and raise dead players better.
Nope, thou I do treat NPC's as PC's every so often (moving aside for them, giving house vendor a chair or 3 around the house & a bed, etc.)