could you make some more direct and obvious way of clearly showing which layer one is working on (suggestion attached). or maybe somebody could make a plugin. or maybe you have/there is and I just need to be made aware.

That is a very good idea for a plugin. Maybe your chance :wink:

Is not exactly what you are looking for but maybe you can modify it to show layers.
I done this just for a test years ago don’t know if it works on G3 (20.1 KB)

The Show Character plugin by @mekkablue could also be a good starting point: