That's an improvement, but I would vote for getting rid of the background entirely, and simply have the graphics consist of just the line-drawn arrows (so they're also transparent inside -- no fill). Make the alpha-blending of the graphics configurable.
This would make it very unobtrusive, and easy to use overlayed on the display. Here's what I have in mind:
The v-dpad can be moved on the screen by simply pressing and dragging any button.
Thanks more_pizza for the app,
I also think dwallersv suggestion would be a great update!