Two big things, and a recommended testing change:
For severe damage, it’d be nice to know when you’ve entered this state for maximum clarity. A new message in red in the location of the “High Speed, Retract Flaps” or over speed, or in the location of “Hold [J] to leave” would be nice. We could even modify the ejection message, like “Severe damage, eject from the aircraft with [J] or attempt to continue flying” (I’m sure someone could hash that out better).
I don’t like the player being considered dead when the plane is written off at the end of the match. Sure, bill me a full repair, but if I stayed in the air, I’m not dead dead. End of story. Tacking on a death at match end is the kind of blanket change that causes angry players and edge cases.
Considering how serious we’re considering “severe” damage to be, a plane in this state (with no forward momentum, or a missing wing, or no elevators, etc) will often resolve itself. It either crashes quickly from missing important pieces, or it does not and through skill and determination, the player remains aloft. These things figure themselves out pretty fast.
When in the severe damage state, players will likely try to return home, and if the match ends whilst they are returning, a full-cost repair is acceptable but counting a death seems a bit too far.
Also, as one of the very first messages stated, Korean-war era jets tend to face this issue the most, where the wing sweep is low, thrust is high, and a second wing becomes somewhat optional if flown carefully. Powerful cannons can also cleanly cleave wings, control surfaces, etc. allowing this to be tested without the effects of damage spread over the entire aircraft. Please make super-props (similar reason, even lower wing sweep) and early jets available in this mode, where the flying-while-dead is most common.
At the end of the day, “Severe Damage” is a rework and redistribution of rewards to give credit to players earlier. Even when a player was considered “dead” in the current system, a pilotsnipe would still reward an assist. This game mechanic, in essence, renames that behavior to try to take kill-stealing out of the equation.