But there is a tactical advantage to a large insignia on the chest. The Dark Knight Returns gave Batman's reason as that it draws gunfire, and he has extra kevlar there. For Superman, of course he's completely bulletproof, but I would think it would be a lot harder to miss if one aimed for the chest. Considering he would want to draw fire away from the innocents and towards himself, this would seem to make sense.
But that costume does look Kryptonian. It doesn't scream Superman to me, but I can imagine another Kryptonian employing it.