I see your point reetp, but if drivers in real racing have peripheral vision and more or less constant knowledge of where the cars around him are, then by all means we should get the same in LFS by using a more sophisticated monitor system, VR headset or maybe beamers in a round room. Or if they do look into the mirrors frequently, then we should too.
Showing the names like that, even if only for cars in the mirror, is essentially a radar - there's no denying that. "But real drivers have..." is really no argument, by the same logic we could say "But real drivers have the seat in the pants feel, lets simplify the physics or add a little steering help to simulate the 'automatic' reaction of a race driver to grip loss". Sure, compromises have to be made, like for example the current tyre sounds that are a bit louder than IRL to help sensing grip loss, but we have to draw a line somewhere. A louder tyre sound is still a rather minor change where you have to do most of the thinking and acting, but a name tag essentially saying "watch out dumbass, there's a driver besides you" is going too far in my opinion.