The solution is really simple. I have suggested it before. HiTech has shot it down before.
If BOTH FE's agree it's a collision BOTH take damage.
If BOTH FE's DON'T agree it was a collision NEITHER take damage...
Under no circumstances...ever...should just one person take damage from a collision
Most of my collisions are "one-sided".. so with your solution I will be able to fly guns blazing through every enemy buff, never having to worry about a collision and getting guaranteed kills on each attack

Being an european player with a comparatively high ping, I suddenly have a genuine advantage - I know I have high latency, I know then I will survive most "collisions" because of that high total lag, it's very improbable a collision egisters on both FE's. An American player with a low ping would be at a disadvantage, cause if his enemy is another low-ping user too, the danger of registering a collision on both FE's is much higher. Result: Not only connection stability plays a role - suddenly ping time does matter tremendously. Players with high ping times (yet stable conections) will have a notably higher chance of getting away with suicidal attack tactics.
You are "solving" a occasional warper problem (which does indeed suck) by introducing a massive gameplay problem on several levels.
The current collision model is a very clever and elegant compromise for the internet related lag problem. Every other proposed "solution" is actually much worse for gameplay.