I hate to be negative but this is certainly exceptable practice. I agree it is not the preferred installation. As for reidentifing the wires I believe this is a pain. If you don't know this connection you shouldn't be there. Same with the switch loop. The white tied into the black immediatly tells me what I have. Unfortunatly 2002 Nec Art. 200.7 (c)(2) says we are to do otherwise.