The only obfuscation here is not reporting a crime against yourself doesn't take away your right to self-defense. In which case the old switch caused complete reversal of C&P sole purpose of existence.
The switch hasn't changed ever. The only thing it does is let other Commanders shoot you, without getting fines or bounties. That's it. And, that's exactly what the OP did. He made it ok to shoot at him. It had nothing to do with the coming changes to C&P, except for the costs.