Being able to control which player's avatars load or not using the world sdk would be very nice as some avatars can be heavy and players may still want to load them when they are in the same room, but not when they are on two different ends of the map. Safety allows to manually disable and enable avatar loading, but when you are in a lobby full of friends or people you trust, it becomes really annoying to have to disable and enable avatars for every person who comes closer or walks away.
This can significantly lower the resource usage which can occur when a lot of people use heavy avatars in a private party, as well as lower the peak load on VRChat's cdn as every player who just joined a highly populated lobby doesn't have to request 100 at once.