How to depict your name on your iPhone's lock screen?
As you very well explained, the notifications will blur any image. So, the options are:


Not to show any notification on the lock screen
To depend on the Find my iPhone service from Apple.


I personally would not do #1, as I lose features from my phone. I have, however, activated the "Find my iPhone" service.

With this service, if your phone is lost, you can send messages to it (that will be displayed on the lock screen) and/or you can block the device and let the person only call a specific (alternative) number. This is called the "Lost Mode".

The only drawback, I see compared to your iOS 6 Wallpaper solution, is that you will have to go to a computer and access the iCloud site to effectively enable one of those features.

Apple has added Activation Lock in iOS 7, that if enabled, even if stolen, your iPhone cannot be deleted or activated with another Apple ID. If the finding person/thief knows this, he will probably return it to you.