As an aside, in the real world, a very SIMILAR problem exists on the observations of simultaneous events.
The topic of Simultaneity is address in the General Theory of Relativity. For reference see the following essay, section C
http://astro.physics.sc.edu/selfpacedunits/Unit56.html In real life, information can only travel as fast as the speed of light, so two events (flash bulbs going off, or lightening strikes) that are separated by some distance, can appear to observers at various locations, to happen at various times.
Specifically one observer can measure the two events to happen at the same exact moment in time, another observer may measure that first one event occurred, then the second event occurred. BOTH MEASURMENTS ARE ACCURATE!
This same problem translates to the internet, but in this case information travels much slower than the speed of light. Consequently the effect on simultaneous events is GREATLY MAGNIFIED.
The bottom line is, the fine folks at HTC have done everything they can to reduce the problem, but as smart as they are they can not violate the rules of physics.
In the end, it IS expected that two or more players will observe the same event as having different results. This is a physical fact of life, a game played on the internet is still governed by the laws of physics.
What I find impressive is that HTC has done as well as they have, given what they have to work with.
Players mostly complain about collisions between airframes, but rarely do you read of complaints on collisions between an aircraft and incoming bullets.
IMO, here's a big thumbs up
to HTC for working with equations in 4 dimensions (3 space and 1 time) and producing (for the most part) a very realistic presentation! WTF go gents!