The trouble is, 'hazard pay' is typically based on the chance of losing your one, limited, life. The odds of death don't have to be very high for hazard pay to be disproportionately higher, because once you die, that's it.
Ingame, death is a mild inconvenience at best. Add to this the fact that death, even in open, is extremely rare, and any argument for this being in any way 'hazardous' quickly goes out the window. So how can you rationally reward players when 99% of them aren't actually in any sort of situation worthy of reward?
There's always potential for exploitation with a pvp-focused system, but in my mind, that's better than a system that is essentially being constantly exploited by everyone playing in open who doesn't actually face danger equivalent to the reward they're being given for no reason. Especially since there are ways to fix and avoid 5C pvp, but once you add global multipliers there's not really anything you can do past that.
1: 'hazardous' I think refers to the capability of someone you meet being able to deter you enough to change the outcome of that encounter.
2: the chance of coming across an NPC that can do that is zero, considering all PP NPCs have no engineering, and don't use the full set of weapons players do.
3: 'hazardous' also refers to the potential as well as the actual outcome. You still have to prepare for the worst or gamble.
4: None of this is designed to thwart 5C. Weighting is the only real (IMO) 5C counter in the proposed changes.
5: You are ultimately weighing the effect of solo and no opponents against the possibility of having capable enemies with weighting.
6: Its arguable (depending on your POV) that solo and PG are the exploits- solo for uninhibited hauling, PG for wing multiplied UM and expansions without danger.