No Diana,
the watermark with the baby isn't too intrusive for that nice image of the text.
Seriously, think about what you want to achieve with your watermarking.
- Are you living from your images or are you just yet another amateur? If you present the images to clients, which might go out and have them printed at the local Wallmart things are different than if you just show them around here.
- Do your images have a high reuse potential? Baby pictures for example are usually only of interest to the involved parents, generic product shots for ebay items are very popular to steal.
If you lose money because of copies, you feel you need to use for image filling watermarks you might want to make them less intrusive. In your case, make the watermark just an outline, so that the colours aren't affected inside the letters. Some of the professionals here might give you better advise about what other steps are a good idea to take.
If no money is on the line, just add your signature in a discrete way so that the image isn't ruined.
Korman