I found the little colored icon and character name over the heads of team mates very distracting and it just breaks immersion.
I thought V2’s system of player outlines was perfect in every way.
The name/icon would hamper your ability to target enemies further in front of your strike team members as it can obscure your vision.
The player outlines in VT are visually jarring. But they do their job exceptionally well so I can forgive the neon outlines contrasting with everything else. Making the visuals less jarring would make their primary purpose (making your teammate’s positions immediately visible under all conditions) less effective.
That’s the trap DT has fallen into with its player outlines. They wanted something that blended better with the visuals instead of the impossible to miss neon outline. They traded visual readability for aesthetics. And I think it was a bad trade. Sometimes the needs of gameplay supercede aesthetic concerns.
There should be three levels to it: None, Default and High Visibility. Default is what we have now. High Visibility adds an outline around the x-ray that you can always see.
As for player name tags and colorization, they did that because there are no longer guaranteed unique player silhouettes. In VT2 you don’t need names because each of the character silhouettes is so easily identifiable. In DT t hat’s not a guarantee. You can have four veterans and their outlines are basically identical.
Name tags though are something they can add settings for (if they weren’t there already.)
Maybe combine the two ideas though. Maybe make the player outline color the same as the player color. So you have a blue, purple, green, orange outline so you know which outline goes to which player. Then you can do away with name tags altogether.
maybe it would be enough for the xrays to have a more vibrant color.
the dimmish blue does easily blend with the plaette of grey, black and washed up green.
That, and it only activates after they’re a certain distance from you. Which, when you’re up to your ***hole in heretics, finding your friends in the middle of a melee, with flames, etc… going, can be tough.
During the beta, I stopped counting the number of times I swung at a teammate reflexively. I would have appreciated if the x-ray outlines were slightly more visible in melee range.
Also yeah like @cedric.d.schmidtke said, the x-rays also need to be a little more noticeable at range. Everything is so grey and blue, so these outlines could stand being a vibrant green or something.
Agree with OP. The current teammate highlighting system is a bit bad at its job.
Teammates often just blend into the crowd without outlines and everyone but the ogryn looks the same when they’re on the other side of a wall.
Incidentally, the highlight effect on pingable actors like specials or explosive barrels or whatever is also much harder to see than in V2.
I prefer the slightly softer outline of V1, the outline in V2 was and still is a jagged, rasterised single pixel thick mess. But it is pretty visible.
They should just copy paste the green outlines into DT and add a toggle switch between the new and old outline system. I like how the skeleton/organ outline looks, but can be hard to see at times, so I’d much rather use the more basic, but more visible green outline system.
Bring back green outlines 
And also, on pinged enemy - remove the skull icon on top (red highlight is enough), its too big, useless and blocks whats behind. Also its confusing with the manual marker that looks just the same, that somebody can place with the Social Wheel.
Without modding i’m dreadful about the future of UI.
Really depends on Fatshark. And whether they choose to acknowledge that the burden for QoL fixes now rests entirely on them. It was nice to have modders do a year or two years early what the dev studio should have done themselves. You could at least excuse the lack of QoL features in VT2 because that existed, even though it made you resent Fatshark for just not…doing that.
But now it’s entirely on them as far as we know…unless they create some sort of white-list approved modding to the client launcher.
I honestly think people are pretty hard on Fatshark and always have been, their foibles aside. But if there’s no avenue to do what they lack the staff, time or inclination to do…then I’m going to be view them a lot less charitably. When we ask for a UI scale in settings and it takes them 2 years to do that, you cannot help but ask what their priorities are if direct, already-figured-out, highly demanded QoL features take them that long to implement.
Forget toying with the idea of versus or DLCs or new modes or whatever…if they can’t pick the low hanging fruit that makes dedicated players happy, and tell players they can’t pick that fruit themselves, then there isn’t much recourse for fans except to get resentful, suspicious or write off the developer as truly not giving a ****.