The tracer smoke was modified since AH1 to include the spiral image they now project. (maybe this came around the time of the water reflection / ground detail update).  It would be reasonable that such a change if agreed upon, would be on a to do list around the same time to allow beta testing for effects and community reaction.
The hit sprite, maybe should be one of those 
scalable things 
like texture size and go along with 
weapons effects check box.  One example of the way to go for hit sprite would be a smaller sized spark,
 less round and more "shakey" gun cam short streak shaped.  This timed appropriately with a brief color spray (to represent metal fragments in some aircraft or wooden splinters in others). 
Less is more.  Maybe show dust and 
tiny streak shaped spark 
unless plane surface or controls are damaged (ie damage list).  Show 
erratic shaped larger explosions when structure or controls are damaged.  For example, peppering an attacker from the tail gunner with .303s you can barely see the planes wings due to the volume and size of hit sprites while the plane flies flawlessly through.  When hit sprites are scaled due to damage, a more detailed viewers experience would be represented. 
http://www.youtube.com/watch?v=gTwZAwyBYjg       http://www.youtube.com/watch?v=rLvWpIEOXFM 
   
   
  