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You can select any contact from the list and filter by category (friendly/seen/enemy) as well as assign a contact to a category. Binoculars have also received a buff, and will allow you to see a colored pip above players indicating if they are an enemy or a friend.
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There is a rudimentary reputation system in the works which will very slightly shade your nametag either blue or red based on how likely you are to kill on sight. This system is a work in progress and will be expanded upon in the future. Any server can disable the contacts system with the convar relationshipmanager.contacts false The nametag system has also changed and you can now display your name plate at long distances to anyone you are looking at by using the 'wave' gesture. We hope this will allow players to avoid killing other 'friendly' players and grant the ability to signal your intentions.
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As for the majority of hardcore rust players who kill everyone on sight anyway, you may as well pretend this system does not exist as it will not affect you. However for those less inclined to destroy and kill every living thing that passes infront of them. This system might help you find some like-minded players to team up with!