I think the previous system was almost perfect - I would only totally remove the server name colorizing, and that you could not only colour peoples names, but also display a colored text (like faction name for example) above their name...
This change just makes no sense... we are gonna make alliance anyway. The only result is, that we will more shoot people who we "think" or "remember" that they are PKs.
So in the end, common players and begginers would pay for this change the most, especially if they pick a name similar to some PKs...