Players can use the collision system to exploit PVP by having their friends be unflagged and body block for them.
Player 1: Flags for PVP
Player 2: Not flagged for PVP
Player 3: Not flagged for PVP
Player 1 will be using ranged weapons and attack an enemy player, when the enemy player attempts to fight back Players 2 and 3 will body block the enemy player, because they are not flagged the enemy player cannot attack them, but they can prevent him from approaching player 1.
This is a scaleable issue as imagine a player with 10 friends following them body blocking other players while player 1 gets to fight back undiscriminatingly.
Yes you can put away your weapon to no longer have collision, but that means you have to put away your weapon in the middle of a fight to phase through them, while you’re being attacked by Player 1, then when you pull your weapon they repeat by body blocking you again.
Ideally separate collision for PVE and PVP players. e.g If I’m flagged I can only collide with other flagged players and vice versa.
But Your’s solution is good 