Actually, I wouldn't have a problem with that, except for 2 items.
1. My default hand timer is 30 seconds (by the time it becomes and issue and I or someone calls "clock" and I turn around and get the timer started, I figure 30 seconds is enough - just my opinion). So, since you can only imcrement the hand timer by 10 seconds at a time, to get to my rules designated minimum 5 minute penalty, it would take a while to increase from 30 seconds to 5 minutes (let alone 10 minutes for second offense). If I could increment the minutes by +1 and +5, then maybe that would work.
2. I don't mind the hand timer being always visible while it counts down, but for a penalty timer, I would want to be able to minimize it and just have it pop-up when the time is done - otherwise it takes up a bunch of realestate and covers important info for a big chunk of time..
I don't need to necessarily have it associated with a player, but if I was running a BIG tourney, that might be nice, just so I knew what table/person the penalty was on (I will never run one that big, unless someone cons me into helping with some charity thing). Although, if the penalty timer was small and a name was associated with it, then there is the advantage of the shame factor for the person with the infraction (or maybe it calls attention to the person and that isn't good - I am sure that Matasow, or whatever his name is would just do it so his name would be displayed for everyone to see).
My 2 cents (not worth a ton since I have not yet had to apply a penalty and I don't do big tourneys).