Honestly, the biggest thing VRChat is missing is a whole new way to upload things through SDK: Props. Props are items that players can upload, use and share it with other players. For example, you can have a very cool sword with effects, but you do not want to use it on your avatar and maybe you want to let your friends try it!
This also helps us make avatars performant and world creators do not always have to add things like markers in every single world, or maybe it does not exist in the world at all! This would also create another new way to sell assets!
I understand it requires more moderation however with improved instance moderations like disabling emojis, stickers, pedestals, drones and prints - we could do that with props as well! This would be the least concerning.
Performance wise, it may add more problems like lag and latency but just like how we can hide avatars, we should be able to hide props as well. Depending on how avatar creators will take use of this new method, the benefits of having it will increase the performance. Even if you have toggles on your avatar and can hide them, they are still contained inside of the avatar. However with props, they can be removed and spawned.