The problem i see with this approach is that you can't see each crafts status/remaining HP, closing velocity/weapon range (and you can't toggle weapons either) etc.
In short, in order to control them you have to switch between each craft. This approach works fine for units on the battlescape, as it is turn-based, but it breaks down when you try to do it in real time.
Honestly, i don't think trade-off would be worth it. Not for something that is purely cosmetic.