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I prefer the colors, it's really not that hard to memorize which hero is on which color. Also, if you only get a glimpse of a hero on the minimap, chances are you'll most likely remember the color faster than you would be able to make out which hero was on the icon
Haven't seen icons, but in a stream I saw, the player was doing something that would switch the standard hero icons on the minimap with their names and the appropriate color coding. He did it by either holding down a button or it was a toggle.