I can't believe this is still a problem. How hard is it to write the code for "the label for a street in the viewing frame should be located within the viewing frame"? Why am zooming in and out, and moving the window around to get a street name to appear when there's clearly room for it. It's a map app!
What makes you think this is a problem in Google's eyes? If you can't reasonably see the street names then you are much more likely to use Google Directions, which is the precise behavior they want to encourage in this case. From your and my eyes and all users this is a real frustration and a detail all of us hate; and clearly Google could fix it easily if they wanted to. But knowing how they benefit from making the street names hard to find - for the reason in my first sentence - why would they fix it?
Having directions take you on a route that runs you by an advertising company could conceivably make them a lot of money. I am not suggesting and have no evidence they do that now, but it's not outside the realm of possibility.