I hate to agree with Algomatic, but he is right. This is the game as it stands now. I personally dislike the fact that this is how it is, and I dislike the fact that players take advantage of it with no regard for others. But that doesn't change anything, it just means I dislike the current state of Open.
FDev have two ways to rectify this if they want people to interact:
1: Ensure there is a seriously harsh punishment for killing a commander, one that effectively renders further play (and killing a second commander) impossible. This will unfortunately make Open useless for PvP, driving away quite a few players, which I doubt FDev wish to do.
2: Create an Open PvE mode. Anyone who logs onto Open PvP and gets shot up can then rightly be told to git gud.
There are ways to combine the two (PvP flag on/off, or some form of insanely overpowered security force that comes to protect a non-wanted commander by insta-killing the attacker) but honestly I don't think these two player groups want to play together anyway, so just give us Open PvE and be done with it...
Something has to be done definitely, but none of your suggestions will work.
1. You explained yourself
2. For Open PVE you have 2 options:
1. PVP Flag on/off will not work because people will abuse it, also explain the lore behind no damage taken by other commander, what about ramming? PP pledges? CZ fights? too many variables.
2. Soft mode aka Mobious - official PVE PG by FDEV. FDEV now needs to have dedicated personnel to enforce no PVP in the PVE group, ban people, investigate complaints, watch videos, basically huge amount of work and there are still going to be abusers.
What needs to happen:
A career for space terrorist like they are trying to do it in that other game, a pirate base with good (multi million credit) paying missions inside anarchy systems, missions to murder other commanders (for the fun of it).
High security systems has tough NPCS, no docking allowed for criminals, PVP bounty hunters that hunt said criminals, criminals are forced to advertise their locations.
With those changes some game mechanics have to be changed: Task killing is a bannable offence and FDEV actually enforces it. Menu log off timer is removed from the game. You exit the game mid combat - same as task kill - ban hammer, you have RL issue, too bad you go AFK and you loose your ship.
PGs are removed from the game, SOLO exist for people with poor connections, BGS and PP cannot be affected from SOLO, its an OPEN only activity.