Daftdog, damage is an arena wide setting. Whatever its set at its that way for everyone in the arena. Use the TA to hone your calibration routine, etc. For that it works very well.
Offline works just well however, as does creating a 1 person H2H host (this works, just no one can join you) Creating a H2H host gives you all the controls.
Damage, wind, time, terrain, planes available, the whole thing.
We are in the process of getting the TA terrain updated.
One of the things asked for was a very low damage target. Something so low that even with damage turned way way down a single 250lb bomb would still explode it.
So yes we are aware of the problem, and trying to take steps to correct it.