Still too CODish for me. I don't know how that makes ppl feel like they are doing anything for their team, you should know if you are hitting them or not. While I'm not expecting a huge amount of realism, i think it brings it that much closer to arcadish.
XP hit indicators have nothing to do with your team.
The indicator is just a extension to assist kills. It's not needed, but without it you probably wouldn't be given xp per hit, as well as the kill/assist exp.