Confirmed, they are out of range around half the time.

Nighttime in Arma2: Eagle Wing was a nice compromise.

Unfortunately the only way I can see the gamma exploit being resolved is via putting everyone on a level player field but taking away the need to use the exploit.

The only solution is to put everyone on a level playing field. The answer to that is increase visibility at night time. The blue movie filter used in Arma2: Eagle Wing may be a good fit.

FWIW I like dark nights but it's too exploitable.

3rd person should be removed, it's not realistic and detracts from the immersive nature of the game.

Thirst/Hunger is fine as it is. I have walked all over and not had the issues you are having. I'm guessing that you are falling into the trap of not eating/drinking until full but rather until the inventory message goes away, just keep going until the inventory says 'healthy'.

@rocket2guns mentioned that mouse accel was being used to simulate weapon handling.

Suggestion; simulate weapon handling by having two reticles;

R1: Single point reticle for the mouse location.
R2: Expandable crosshair reticle for the current weapon.

R2 should lag behind R1 by varying degrees depending on bulk of weapon and player condition.