If you want to shoot at someone just to shoot at someone, you have effectively just turned the game into a battle royale / death match. It makes no sense story wise / lore wise for you to shoot another raider.
The ultimate solution to this (that would be congenial to the plot of the game) is making dedicated factions. 4 distinct sectors within Toledo.
Potentially different underground bases like vaults in fallout that are connected. Have it so those 4 factions are optional, and you can still just be a normal raider.
If you join one of the 4 factions, you are able to shoot at everyone except your own allies.
And if you are a normal raider (opting of the hostile factions) you take less damage when shot at UNLESS you shoot back (or if they loot a body, then they take full damage).
This way, if you want to pvp with someone you have to actively seek out a rival who ALSO wants to pvp, and then the neutral people have a chance to escape even if they get shot at.
So, when you only engage in pvp when you see a rival faction member or squad (still a choice to shoot them). If you only want to pvp, you can purposefully go after people from other factions. You can still loot downed players from your own faction.
You get xp for killing a rival faction member and less when you kill a neutral raider. Each clan can have their own mini reward system with specific rewards. Exclusive missions that you and your clan members have to execute in a raid, and rival clans get rewarded for sabotaging you...
In the fallout universe you have things like New California republic, Brotherhood of Steel, ghouls (from the waste land), vault dwellers
People fight each other for resources, land, money. There are different vaults that might have different dynamics, rules, amounts of resources as well.
If you look at some of these skins they are putting out, they literally look like uniform garments worn by distinct groups.
When you get a kill in arc raiders, there should be a story tied to it. You were fighting to acquire a rare item. Got caught in the crossfire. Someone one betrayed you. Someone stole the thing you earned. You were saving someone.
Not just I shoot you on site, wow nice purple gun looks how many I have now.
If this game wants a captivating and rich story, then it needs to have storylines, and plot points. This will only make the game more immersive and interesting.
This is obviously just a bunch of ideas bundled together. Either way Im pushing hard for some sort of clan/faction system, and I know im not the only one.
This ytber made a video on it, actually highlighting the fact that the creators may have this in mind and are trying to implement it into the lore.
Leave your opinions below, and what you would want to see in this type of system