The Panther user switching menu should have three display modes:
- The current default of the active user’s full name.
- The current user’s login window picture.
- The current user’s account name (i.e., jsmith, jdoe).
The first two could be switched between by dragging a simple bar like that used in OS 8.5-9 to switch the application menu between displaying names or just icons. The third might be a preference under the Login Items -> Fast User Switching section and would take the place of the first option.
The login pictures do not all scale very well, but I think that an somewhat pixelated picture is a small price to pay for regaining substantial menu bar space.