Sius, Solar explained many times that replacing timeouts with something else requiring player attention will never happen.
1) Dig rocks 2) Do whatever you want for 6 minutes 3) Dig rocks
For devs 2) is very important because it allows you to play while gathering. If 2) is replaced by walking around worldmap for 6 minutes, then players will be even worse off.
And honestly, I don't even have to try hard to prove my point here. It's all evident. How many people are using autoclickers to get the stuff they need right now? The situation really is bad when you seriously start wondering if it's over a half of the playerbase or something closer to 2/3.
I'd say 100%, but only of very high-level players. I never even considered using autoclicker, so for me maybe 5% of normal people cheat.
How many people are actually playing (as in enjoying) the game when working for their ammo, armors and weapons? 1 out of a 100? Is there anyone thrilled by the need to alt-tab every 10 minutes to click the button? Is anyone really holding his or her breath waiting for some complications of the crafting procedure (cause that's what "making it more engaging" means, folks) that are going to make it even more mundane and unbearable? How many people are actually AFRAID of playing the fun parts of the game because they could lose their precious items? Something's wrong when the leader of one of the largest PvP factions admits it's a problem.
Your point of view is from a big PvP faction where the only source of fun is shooting others. Here's how I see it:
I recently started playing again and have a low-level character:
Gathering materials is time-consuming, but easy. Crafting is very fun thanks to the 60 minute total cooldown.
After I can craft gunpowder, I simply make myself a shotgun and 100 shells. The whole process takes 20 minutes during which I shot some more scorpions and gained a bit of cash shovelling shit in Hub.
Then I go look for brahmin to make a tent. Six minutes pass quickly and I go dig some more minerals for ammo and make them into gunpowder. 4 minutes are left after I did that, I find brahmin, kill them, and timeout is already finished after I have 3 skins. So I get junk, go south for minerals, and can craft another 100 ammo with my newly-made metal parts.
The only time when I alt-tab is when gathering minerals to sell in NCR. Game is engaging, allows me to do whatever I want while crafting, and I get experience faster.
As for being afraid of playing, those people didn't play EvE and never learned an important lesson: "Never use items that you can't easily replace."
People don't want to do stuff like that. They want to interact with each other whether by hunting together, fighting against each other or roleplaying. Even crafters probably dislike the procedure of gathering and waiting for the cooldowns to stop and really enjoy only the final effect of their hard work (ie. fresh stuff on their shelves) instead.
Enjoying final product is shooting stuff. Not leaving it on shelves. Hunting together and roleplaying while the six minutes passes is easy.
And let's face it - farming for guns and ammo is fun. It may not be the most realistic thing in the gaming world, but it's a semi-believable way of getting your basic stuff in an efficient manner that offers some sense of progression and achievement. When you kill a caravan, you're happy cause you've won the battle as evidenced by dead bodies lying around you. When you hit that final mineral pile and go crafting those precious bullets you're just tired and amazed you've been actually doing this crap for an hour or so. Both actions are essentially repetitive and ammount to a few clicks here and there, but they are perceived in a completely different way. I really don't know why, maybe it's something having to do with people enjoying blood splattering their screens or maybe it's just the fact that fights require your attention cause even in repetitive engagements shit does indeed happen.
You are seeing things only from a PvP perspective where nothing else than best stuff counts. For an organized group killing caravans is indeed possible and probably fun. And it is still possible. It's only that the equipment they carry is limited to how much "resources" a square has. Now that I think about it, patrols and caravans are quite frequent in the south already. One out of three encounters is a patrol. One in ten a caravan.
You just need to have the correct mindset for crafting right now. It's not a boring, repetitive, one-click action but a quick, simple, one-click action after which you can continue what you were doing in two seconds.
If mineral and ore weight were halved, I'm sure more people would decide to harvest on the go, and not just stand still in one place because having fighting gear and minerals overburdens them.
Either way, there are 2 ways of solving this issue - either continuing to cheat ourselves that bumping a virtual hammer against a virtual rock can somehow magically become fun, or admitting that it's bullshit and should be an occasional activity performed mostly by people who just got in and didn't tire of it yet and people who want something a bit stronger than everyone else.
And you think factions like yours will be perfectly happy having only the mediocre stuff?
I think your other suggestion about un-nerfing everything fixes this problem better. If an SMG was capable of doing enough damage to be worrying in PvP, then people would craft those, as they require maybe 20 minutes in total, during which people can do other stuff. And if somebody is not a crafter, they can still gang-rape caravans with their 18 slaves.