Loving the smoothness of this. One concerning thing is overlapping notes – I don't want to be fucking around with trying to move the canvas just right to read a note under another note and there doesn't seem to be any other simple mechanism to resolve this (especially for larger blocks/images). The 'untangle' feature doesn't really solve this.
I'm thinking LOD might help mitigate the overlap issue, perhaps by having an LLM progressively shorten the text until it's a single Unicode character.
Also, as other comments suggested, shading or similar techniques could help.
That said, I doubt this can be fully resolved unless the text is rendered in hyperbolic space, as another commenter mentioned. I'll need to experiment and see if that's doable.