Yes, its true for incoming payments the from address (if available) is shown rather the to address.
This is because without HD wallets, it is not recommended to create separate addresses all too often.
But then whats the point in assigning names to created addresses at all if they never show up anywhere, whats the point in being able to create new incoming addresses at all if you don't recommend it? I think the question whether its recommended to backup often or to create new addresses often or not is completely unrelated to the question whether to show a
human readable transaction log instead of showing meaningless unknown and unrelated cryptic addresses.
Please change it to display the name of the incoming address instead of the sender address or at least make it a config option. Even if I have only 3 incoming addresses that never change I would rather see which one of my 3 address just received a payment instead of being forced to open the transaction details every time. This would greatly reduce confusion and enhance the user experience.
You'd need to back up your wallet on each received payment.
No, you'd need to backup only after creation of a new address, not after every received payment to an
existing address. This is not related to the question whether the broken transaction log display should be fixed.
I'm going to donate 0.5 BTC if you can fix it in the next release, I guess it would not be more than 1 line of code to make this change.