And that hourglass has already proved itself to be extremely helpful to administration members in multiple cases. :redface:
It doesn't matter if you turn it off, users with it on can still see if you're afk or not. 
I think it is a good thing except that everytime a player lags it appears.. :skull:
The clients will put an hourglass near the player's name if they are paused, in the middle of crashing, or otherwise non-responsive to the server.
Okay, so I'll clear up the hourglass as it is official detailed...
The hourglass indicates the server is not receiving data from the client, nothing else. However in short, when you pause this causes your client to stop sending data to the server as the game is escaped, in the same when you are crashing the client is no longer able to send packets of data to the server. This can also be caused by client-server lag, which is when packets are delayed to the server and sometimes triggers the hourglass indicator if the packets are to far apart in delay.
DO NOTE: It is
not an effective 'AFK' indicator, it just happens to work in that sense due to data transmission mechanics. A player can still go AFK, without alt-tabbing and the hourglass will not appear as your client is still actively communicating with the server. Keep this in mind, to both players and administrators.