One of the staples of a MMO to me is chat also appearing overhead on a local player/character talking to you, I find this feature should really be in Wurm of all games, Lots of MMORPGs have/had it and I see no reason to lack the option to toggle such a thing. It really draws you in to look at the person talking to you vs just looking down at chat. It may seem simple but I assure you it is a powerful tool in the art of game immersion. This feature would be a good addition to the UI changes that are being looked into.
Ability to toggle it and it would not in anyway change the normal chat windows, this would be a second option that can be enabled/disabled and font size change along with being able to set the fade timer on the bubbles and their transparency along with font color.