In 3.10.0 I've found if I set the [MailSettings] like so:

EmailSender="My System" <system@mydomain.com>

received email notifications are almost set correctly and appear much nicer in email clients displaying the sender as "My System" rather than just showing the email address.

However the Return-Path: in the email fails to get set properly. I realise this is not technically a bug as its wasn't designed to support the full email address format however its so close it would be nice if this feature was supported in future releases.