I like input prompts (or field labels inside the field) but I don’t like when the field labels are removed as a consequence. When you click into the field, the input prompt disappears and you have no visual indication anymore as to what you should be typing there. This is especially annoying in larger forms with many fields.
So I was pleasantly surprised when I saw how T-Mobile solved this. The input prompt shrinks and is displayed above the input area. Ok, granted, when your form has 2 fields and it is a login form (i.e. username and password are those 2 fields) you might not need this but I’m still sold.