> I'd add that though we've adapted to the look of a cursor, the designer in me cringes at the thought of outlined text (though I'm willing to allow that there are probably applications of this that work elegantly; I just can't picture any).

Outlined text is quite common in videos (e.g. for subtitles or credits). The outline doesn't disturb at all if done properly — it doesn't have to be thick, a subtle shadow will usually suffice.