Quote Originally Posted by R-Odin View Post
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.
I got the impression that Yoshi explicitly stated it was removed because "players didnt like to go around mobs and other players"