The supporter icon actually was still visible. for approx 2-3 days, when the option the hide banners was implemented, but somebody, ( can't remember who ) suggested the icon be removed as well, and Talon, man of the people that he is, swiftly made the change. I kinda still wanted the icon myself, as I felt the initial concept, proposed by a great man, full of fantastic ideas, was made simply to have an uncluttered avatar. I get the feeling he's cool with things as they are though. Supporters can still be found via search, and the icon also appears when commenting in news stories/articles.
Well, there's two options. "Hide all banners", and "Hide supporter status". I feel the first one should only hide the banners, it only makes sense for the latter to hide everything.