Personally I'm not cool with it. Part of the strength of Day Z is not knowing whether you should trust another survivor. The indicators are also misleading, I think. Whether someone looks like a bandit or not does not reflect how they will react to you. Humanity resets with each life, right? When a bandit dies he will look like a survivor. I did like Rocket's idea of making a player's hands/arms bloody for an hour or so after looting a corpse, though. That's more ambiguous.