I can see the benefit of knowing what ship you are approaching, and the gaming of recognizing what's out there and their names. No doubt that after a time, players can identify ships at a glance. Ships at a distance have no identification except ones own judgment through the glass until the ship are closer and the name appears. Given that, a tiered system could actually work.
At distance, like now, no identification but one's own experience. At a certain distance the type of ship or class. And finally after some closing, the name of the ship. Of course, the use of a glass should advance that process by what ever percentage is deemed appropriate.
The only other option I see (and easier) outside of the current system would be the option of a key to switch back and forth from type to name.