There is zero documentation on how the outline is even generated right now, so we can only guess and hope.

Often times VRChat takes the pickup outline not from the attached collider, but from a random sub mesh. At the same time, the "selectable area" of a pickup is taken from the collider instead. This results in a counter-intuitive outline that doesn't match the expected grabbing area.

Solution: We should be able to set the outlines ourselves so that it matches our desired outline. Ideally by assigning a mesh to the Pickup component.

We should also be able to change this visible outline at runtime (via Udon) by assigning a different mesh when needed. This is needed for any pickup that can change its shape, e.g. a book that can be opened or closed.

We should also be able to disable the outline entirely. People are already using PhysBones on Avatars to have "Pickups" that don't have an outline, so worlds should be able to do the same when needed.

There are some other requests related to Pickups that are as old as Udon, but are worth being mentioned here:

We should be able to set the pickup into the local player hand ourselves via Udon.

We should also be able to disable "drop", so the pickup stays in the player's hand. Similar to how you can "disable exit" on a station. There are countless games where the player needs to hold an item the entire time and never drop it, and actually needing to hold it yourself is not very nice.