Earlier quoted context omitted.
I just watched a fansub recently where they replaced some environmental text in the background, and they used the ASS format to render the english text out of focus and seamlessly match the depth-of-field effect used in the show. Some groups really go above and beyond.
Definitely. For example, MTBB's subtitles for Kimi no Na wa are very impressive. There's a short showcase of them on YouTube (spoilers): https://www.youtube.com/watch?v=n_c-eKTisI0 It's a shame you basically cannot get anything close to the quality of fansubs from any commercial/legal options.
It suggests that the character itself is writing the English text, or that it magically appears.
If it were simple subtitles, it would be clear that these were translations, and that in the actual story there is only Japanese text.
Notwithstanding the impressive technological nature of it, but that also seems the reason they did so. Methinks it's a case of using cool technology because one can, even though it doesn't produce a more convenient result, however cool it might look.