I don't have a problem with it personally but feel that would:
1. Cause additional distress for those who especially value being perceived as they would see EXACTLY who wasn't seeing them.
2. Cause targeting of those who were in basic outfits and additional griefing by those who now know these individuals are actively avoiding other players "expression".
Further I don't see how this is "fair" in any sense. Why is there a "punishment" for using an option? Why does someone changing what amounts to a setting on their computer warrant some sort of indicator?