The limitation on dynamic bones is fine, but I think it should be off for friends.
Creating this all or nothing thing where you either have uncheck it in a hard to find menu box or deal with stiff looking avatars from everyone doesn’t really cater to a good expietence.
Allow people to self regulate their performance. if I click on someone and do “show avatar” I would prefer all their avatar components(including dynamic bones) to be visable) instead of then having to go into a separate menu.