A) The cone shape accurately reflects the fact that range multiplies errors in trajectory. If you're shooting at something 10m away, you can have a fair bit of inaccuracy and still hit a target. If you're shooting at something 1000m away, even the slightest shift in aim with cause a miss. Small inaccuracies are to be expected, lore-wise, given how they 'lost' the knowledge needed to build new 'mechs or maintain the ones they had; most 'mechs weren't fresh-off-the-line Abrams with a perfectly-calibrated gun and excellent targeting computer, but already slightly-worn machines.
 I don't think movement should affect the size of the CoF.  I'm assuming we'll have a bit of 'bounce' when moving, and that already affects targeting accuracy.  It is, however, something that a person -can- adjust for, if skillful enough.. and a good way to reward skillful people who practice a lot.  It's almost exactly like a sharpshooter learning to control his breathing before taking a shot.
 I don't think movement should affect the size of the CoF.  I'm assuming we'll have a bit of 'bounce' when moving, and that already affects targeting accuracy.  It is, however, something that a person -can- adjust for, if skillful enough.. and a good way to reward skillful people who practice a lot.  It's almost exactly like a sharpshooter learning to control his breathing before taking a shot.C) It provides a very keen, realistic way to simulate component damage. You take a shoulder or actuator hit? Your CoF widens for any weapons in that arm. A pilot targeting via a HUD requires that the machine be in perfect working order, and once that's lost.. yeah. You're not gonna hit much if your 'tell' that arm to elevate the cannon 3 degrees off level and shoot.. and instead it only rises up 2 degrees.
In short: combine the two extremes. Make it a narrow CoF that means nothing at short range, very little at medium range, is slightly annoying at long range, and becomes a real liability in high-heat/high-damage scenarios.
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