A key thing to remember here with this toggle is we also have the weapon and headpiece ones. We literally pull our weapons out of thin air. Where do they go? Does it matter? It does not.
I agree the source of the problem is the clipping itself but SE simply aren't able to address that. There is a dev at SE who could have this toggle implemented in very little time considering the capabilities are already present and all that would need to be added is the UI element with the function for it. The toggle is more of a last resort but it is the only option that would work to eliminate the clipping without a ton of work for the devs.