I think I can help here...
I believe all hit detection is client side, period. If you hit the image of his plane on your FE (see hit sparkles), then you really did hit him and that info gets sent to the host. After a small delay, you'll see his FE got that info, the damage is applied, and then you'll see the results. This is why sometimes it will be a second or so before you see any result from ripping a guy up. But basically, what you see on your FE is what counts. If you can hit him and see hit sparkles, you hit him, period. Weird net conditions can still possibly cause odd behaviour, but that's really pretty rare in my experience.
This is obviously a compromise to deal with latency issues on the internet, but I think it's the most sensible compromise. This way you don't have to guess where he "really is", you don't have to rely on him having a good connection, and you don't need a hit bubble. The things you do have to think about is that your actions are delayed on his FE, and vice versa, so for example you do your HO evasion moves quite a bit sooner than you would expect... like D 1.4 or so. It also means that a guy closing on your six is very likely closer on his FE than he appears on yours due to latency, so you have to time your evasives and other responsives appropriately.
I really don't know for bombs and rockets, but I would assume it works pretty much the same way.