As much as I'd love to have a bit more freedom to transform others and to see NPC's transforming each other, I don't see it "working" with this game.are there plans to overhaul the interactions (especially the forced transformations) between MC and other contestants, and among themselves?
I mean, obviously it makes a lot more sense than the current mechanics as far as the background goes. But the current direction the game is currently going (which is certainly good) doesn't really facilitate that sort of thing. A sandbox-ish style game where everyone's competing to hypno/tf each other would be fun to play, and there are games kinda like that (my memory fails me and I can't be bothered to find them), but the mechanics already laid out would make turning this game into that an absolute logistical nightmare. This game has come to be a "player vs. everyone" experience despite the backstory. It's probably best it stay that way and the backstory change somehow.
Turning it into an "everyone vs. everyone" game will inevitably break shit. Changing course this late in the game's development never ends well.