For what it's worth, I rather like the text bar; but would suggest making it semi-transparent if possible. Or, what about ditching the bar and using colored text and a contrasting color outline on the text similar to custom names on this forum?

As for the position of the text, I prefer it centered at the bottom. I personally wouldn't want text above the character; for someone like myself who only plays on Nutaku, it would end up looking lopsided.