For me they ruin the experience completely. The names are sticking out and have no purpose for being there, its like someone poking my immersion seeking eyes just for the lolz. The big colored circles are completely out of the games color palette and destroy whats left of the atmosphere after the nameplates. I never needed such things in Diablo 1 which I have played alot in the past years with my wife.
I understand there is someone somewhere who doesent know whos their character without red circle around it or which direction they are facing by looking at the character (or u know, by knowing which way they are pushing their analogs) and thus needing an arrow to tell it to them while being so demented they need to constantly be reading what was their characters name because even colored circle is not enough of indicator for them to remember, but for me I can see who reacts to my controls and keep track of their position on the screen just fine without any extra handicap aid.
Its not like couch co-op is something that is only played by hyper casuals who have zero care for immersion or comprehensive diablo experience. We want to experience the game like the rest of the players, without it being turned into some mobile game experience.
I pray for Lilith that the devs see the darkness this game hungers for and give us option to turn off the indicators come full release.
For now my solution is to play on PC and wife plays alone on Console. This is less cozy but atleast we can enjoy the atmosphere and be immersed into the world of D4.