Ask any retailer the definition of a great look. The answer would be a full product presentation with no part of the display showing! I would say the above with some display showing to border or frame the product.Granted if you sell out of an item and the store staff are too slow to fill the goods back in, then the exposed display does look better then conventional slotwall or pegboard.Just remember that slotwall works well in aligning product in the horizontal direction. However the downside of slotwall is the strict dimensions in the vertical position. If you product package hanging on the peghook is in multiples of 2.75″ on a 3″ on center slotwall spacing life is beautiful If the package is over that dimension, the end result is you have to skip a row when placing the item one over the other. When you calculate the lost area due to the spacing it could result in $100 per sq. ft. loss in sales productivity. Multiply that loss over an entire store of slotwall and it isnt a pretty story.
Remember form follows function and if the product and packaging works to the slotwall strict rules that is a good solution. If not, you are penny wise and pound foolish