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Here is a test version for those of you who with to test and share their experience.
As seen in the screenshot below - title names are dimmed. It happens like in normal XMB mode - after about 5 seconds title names will fade to barely visible and you can fully enjoy the game background.
If a button is pressed, titles fade-in again
I also changed the length of the names for each modes, so more characters are visible. Also in file-manager names of files and folders with "%" sign are now fixed.