My opinion on the topic is this: while having a system for the handling and usage of LARP arrows would be really, really cool, it likely would not work for a few reasons.
1. LARP arrows are expensive, not everyone can afford to buy them as it would be costly to switch a character from packets to LARP arrows. This would also discourage people from playing ranged characters.
2. Retrieving arrows in the middle of a battle would be much more of a hassle than just picking up packets off the ground.
3. There isn’t room for two systems; in order to make the switch to a LARP arrow system, rules for damage would have to be different for the arrows in order to compensate for the decreased number a person can carry as well as the increased amount of time it takes to fire them. It would be confusing, especially to new players, to maintain both systems (Not to mention that arrows would likely have to deal more damage in order to compensate, which may seem unfair to players that choose to remain packet-users). The only option would be to remove the packet system, which is not a good idea for the previously listed reasons.
In a perfect world, I think we’d be able to use the LARP arrow system. It would really add to the experience of playing a ranged character. However, it would decrease both the effectiveness and frequency of ranged users, be far too costly to use exclusively, and be far too confusing (and potentially unfair) to implement (exclusively or otherwise). Those are just my (somewhat convoluted and parenthetical-filled) thoughts on the topic, though.