Should be combined with squad.xml instead of in-game settings, to make it more dynamic for clan usage (like rank patch etc.)

See #0003882 for squad.xml improvement.

That could be cool; just as long as its dynamic, easy to use, and doesn't tax the server or players in the server

Excellent idea. Arma 3, it's about time for something like this. Definitely +1

Would be cool but would also increase server's stability issues.. ArmA2 already has problems when the server cache folder gets filled of squad.xml images.. imagine what would happen with all that shit going on in the server :-\

I like this idea

its been done in other games with minimal to no hit, at least not noticeable... so there has to be a way.

The solution is actually very simple and it works exactly the same way as the current system in ArmA2.

1. create a unit/vehicle model
2. add (named?) hiddenTextures to the model to position the patches

3a) core; apply textures and show it ingame (from squad.xml)
3b) script; apply textures and show it ingame (with setObjectTexture)

4. share texture(s) with all clients

Both the client and server impact are minimal. It only requires you to download all the images (unless it's part of a mod / inside mission file).
By limiting the filesize (.paa files are already small) it's possible to do this without any problems, even with slower internet connections.

This is real old and BIS still haven't done it?