
I think this could help free up a lot of screen space while still providing useful information at a glance. Also it would help with things like how you can't see folder names when captions are turned off currently.
Perhaps label colors might factor into this as well. Currently custom label colors change the background of the text within the caption, but if captions are hidden, labels cannot be seen. Maybe this could be extended into a (non-layout-breaking) border around the thumbnail, or filling in the padding area around it with the label color assuming the user hasn't set the padding to 0? Currently mouseovering a thumbnail with the appropriate settings does show a 1-pixel highlight border, so perhaps something like that with the label color, as an idea?
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