I’ve thought about making it so that when a token label could fit within a token, it renders on top of it like this. I think the interface would be a little weird, especially while editing the label, but it could help the label clutter for a decently common situation.
I haven’t given dev time to improving the label clutter in awhile, and this is just one possible solution to that problem, so I’m not sure whether it’s the best one/a good one to do.
In theory, it seems reasonable though. And is certainly a solution I plan to explore a bit when I turn my gaze to token labels again.