Why would it be such a bad idea? I think having a player's ship erupt into a fountain of rare materials & data packets is a fantastic idea; not only would that be really useful and kind of consistent with what happens to NPC's when they pop, it would also put to bed all of the accusations from people crying that they were blown up "for no reason at all!"
It's what I call a "win win" scenario.
Maybe he doesn't like the idea because exploit potential. You could just agree with a buddy of yours to kill each other for the sake of getting mats.