I do not like the new friend or foe system like many players. My suggestion is that if the issue is to let players armor and coatings to be more present, then let them show without the highlighting system. Just put the players name in Red or Blue above their head and call it a day. COD, Battlefield, and many others do this will all players looking very different with no issues.
Also the threat sensor is useless as it is now, so my suggestion is that when launched any enemy caught in the threat sensor bubble is highlighted with the friend or foe system current look, but only or a limited time, maybe even when they are out of the bubbles radius.
I realize my suggestion is unlikely to happen at this point, but I just wanted to get this idea out there. I feel like this would have been the direction that makes most sense without completing changing the game, and appeasing many players who feel the same.