I know, and I hate it >.>

I wish OOO fixed it because it would be 100000000000000000000000000000000 easier gunning.

My theory is that the hitbox for knights is located in the center of the image so even if you appear to hit them it might miss it and that bullets are actually smaller than they appear(such as the difference in bullet size for alchemers between low quality and high quality).

That's something that will more likely never be fixed because of the nature of alchemers. Here's some insight as to why for example projectiles aren't lag compensated in their games from Valve's Yahn W. Bernier

"(...) For weapons that fire projectiles, lag compensation is more problematic. For instance, if the projectile lives
autonomously on the server, then what time space should the projectile live in? Does every other player need to
be “moved backward” every time the projectile is ready to be simulated and moved by the server? If so, how far
backward in time should the other players be moved? These are interesting questions to consider. In Half-Life,
we avoided them; we simply don’t lag compensate projectile objects (that’s not to say that we don’t predict the
sound of you firing the projectile on the client, just that the actual projectile is not lag compensated in any way). (...)

Only way to make it lag-proof would be having the projectiles turn into a instant-hit (i.e. hit on click without delay) and then calculating the ricochet off the target and that would dumb down the drivers massively.

Lol @ the last clip of Thrillhaus running up to you and you dying, then the swing occurring.

lol I remember that game.

It's a driver thing, mostly.