This will be a good addition @Rory People will talk to people before they just blindly run in fighting them. It will make ambushing more realistic since we can hide under trees and our name not be shown.
It will also make spying and infiltrating more fun. Also it will make each ninja more unique. "Hey remember that guy wearing _____ let's find him and kill him" *changes outfit*
This will also set up for a new jutsu known as Henge NO jutsu to be added and make it worth it