1: Not everyone use shields.
2: Not everyone use Armour.
3: Many weapons look quite similar on long distance.. Like the Khergit "sword" (forgot what its called) and the normal sword.
That little, insignificant piece of artwork that hover above my friendlies heads are very important. At least for me.
Sure enough, I'm not a veteran, I'm sure some of you guys out there can spot any type of weapon at a mile away, memorize what type of weapon every faction have, and then place a bolt or arrow in the head of that guy.
4: All factions have javelins. So, if you see a naked guy without armour wielding javelins... Do you shoot? Or do you wait for the Javeliner to make the first move, because, if you do, you're rather dead... On short range of course. There are more weapons that are pretty impossible to separate visually unless you are standing right next to the guy.
Pretty much all of the polearms, apart from that Ashwood Pike (or whatever its called), Champion Lance and Glaive and other "knife on a stick" weapons, look just the same...
5: Don't remove the team tag. If anything, make it more visible...
I was Nord defending a castle in a siege, I saw this guy standing on the wall looking at me. I zoomed in on him, he had nothing above his head, only clear sky with clouds above his head. So I took a shot, and of course it was a nord.
The nord tag is white (with some light blue I think), a thin cloud is white, with some light blue... And yes, there was a cloud there, I didn't mistake the tag for a cloud, I simply didn't see the tag because of the cloud.