That seems to be the purpose of it, yeah. But it comes at the cost of readability and (for me) immersion, so I have to wonder if there isn't a better way to do it, even after putting it behind a toggle. Some way to earmark yet-unnamed NPCs you want to recognise until you know them enough. Something like giving their name a special colour, a note on their profile, or a short few words (i.e. "an x, y-dressed, z-haired college girl/boy you're interested in") next to their short description, or just an asterisk*.
Please note that putting things like colors in names is of no use to those of us who cannot see. The same thing happens if the characteristic of the person being described is too generic. This new feature is designed for accessibility, so placing it under a toggle is not a problem. Other options could be considered, of course, but the developer and his team are taking accessibility into account here. That's why everything is so descriptive and detailed, something that for many can even be annoying because they prefer to imagine the image in their head. Those of us who can't do that need the details.