That was then, this is now. There are replacement text widget plugins out there that will let you change the name of the widget on the widgets panel, if you really want to do so.
My solution works for all default widgets :), text, RSS and Categories. :)
I don't see the point in it much myself, because I don't frequently change my sidebar widgets around and for the few text widgets I am using, I can easily click them and see which widget they are without too much difficulty. If I was using, say, about 8 text widgets, then it might be useful, but I'm only using 2
Exactly, I dun use widgets at all, but it was just a reply for someone suffering HUGE number of widgets:)