ULID seems like a better solution to me: still 128 bits but with a more compact canonical format and sensible timestamp and increment semantics.
I guess it's not far off a v7 UUID though.
Picking something primarily because of its human-readable form rather than its machine-readable form is probably not the best decision criterion.
ULID on the other hand depends on an uncommon encoding scheme. It is more complicated than hex encoding, so it's easy to make mistakes when implementing it.
Finally, the encoding scheme is weird, because it "wastes" a few bits at the end, so if you are not careful enough you could end up in a situation where two ULIDs in text form are different but once you convert them to bits they are the same.