That was quite a break from posting.
I wanted to complete several things before this write-up.

First and foremost, firearm recoil!
The crosshair gets an invisible physical body to whom I apply an impulse whenever a shot is fired.
It is completely deterministic so you could basically learn the force pattern:

In the clip above, my mouse controller remains motionless all the time.
The whole displacement results therefore from the weapon's kickback.
Notice that regardless of recoil, the bullet is always launched exactly towards the crosshair with pinpoint accuracy.
New weapons by the way! That was me shooting a submachine gun and there's also a semi-automatic pistol.

Secondly, bullet traces!
Some of the poorly written simulations fail to duly visualize the logical step at which bullet's destruction takes place;
upon integration of its position and detecting the final collision, they simply dispose of the bullet and forget to render it at the exact point of impact.

Watch the above video once again.
Bullets randomly stretch as they fly (to introduce some variation) and later they shrink exactly at where they are supposed to die.
They disappear only at the moment they become zero width through smooth contraction.
As for me, this makes up for a seamless hitting experience.

Thirdly, particle effects!
I'm sure that you noticed by now but let's view it again in an actual firefight:

The gun's barrel noticeably explodes upon every shot, the bullets leave pixel traces and the shells burn for a while!
And have you noticed yet another thing unfamiliar to you...?

That's right!
It's a brand new experimental weapon we've got our hands on.
A friend of mine will be working on melee fighting system in the meantime.

That would be it about recent progress.

In the nearest future, I'm certainly going to do something about these countless bullet shells -
just shoot for a while and they can be found everywhere! It's fine if it's singleplayer, but I totally cannot afford sharing state of them all across multiple network clients.
The approach I'll probably stick to is not exactly constraining their lifetime, for I hate deleting game entities for no clear reason;
instead, I'll make it look like a shell attracts every other shell using a physical force;
whenever two shells touch, they react and form a singular object called Anomaly to whom each close enough shell will converge.

Something similar will necessarily need to be done about stackable objects -
some griefer who buys 500 machine gun bullets and drops them one by one to the ground as physical bodies is the last thing I want;
I will counter this by similarly converging item charges close to each other and stacking them automatically.

I'm also going to make some neat circular health/ammo HUD and maybe something that would work as shield/mana?

Last but not least, I just had to record this lovely motorcycle akimbo:

Stay tuned for more!