Hi there,
I agree that in a piano-dominant format, showing the different syllable elision for a 2nd or 3rd verse seems unnecessarily complicated. If you are only doing the vocal part, perhaps it's worth it to show the differences in the verses, though.
I think your idea of adding "VERSE" and "VERSE ENDS" looks helpful. These pop songs with complicated repeat patterns are tricky enough as it is! I think readers would be thankful for a little extra help navigating.
(Just noticed that in the pickup measure, you have a half rest instead of a quarter rest!)
Hope that helps!
Kathleen