Quote Originally Posted by R-Odin
I'm pretty sure they turned off collision detection of these kinds so as to lighten the computational load on the servers in order to address the issue of severe lag experienced early on. I got the idea that it was more of a temporary thing, and that it would return once the algorithms being used were made more efficient and/or servers were upgraded to handle a higher load. That is, they would bring it back once they could do it without causing the servers to lag.
Quote Originally Posted by giftforce View Post
I got the impression that Yoshi explicitly stated it was removed because "players didnt like to go around mobs and other players"
I did some searching, and as far as I can tell, there has been no reason given for the removal of collision detection specifically between players or players and mobs. If anyone can find one, I'd be glad to see it.

However, a less specific statement can be found in the table of update plans as seen in Letters from the Producer, such as III and X; the statement occurs under the plan of environment collision detection, but the statement itself seems more general, referencing "collision detection" of no certain kind. There is a separate item in the table for character collision, but it is left unexplained.

"Risk analysis of collision detection adjustments to improve movement response"

Interpret that however you like; to me it says that collision detection adjustments are being made in order to improve movement response, where response is used in a technical capacity to refer to the concepts of response time and responsiveness (http://en.wikipedia.org/wiki/Responsiveness).

I'm not saying I'm right; but I'm not pulling **** out of my *** either.