Why don't you put out a new video? You put a lot of work into this, so putting out a new video would help people decide to try it. Right now, the video looks like it's more of a drunk mod, and I see why negative feedback. Arma 3 has a pretty good fall system now. Units are changing into different positions in the air. The higher the fall the lower they land. I can't see wanting to fall down in the game but as long as you are putting so much work into it you might as well make it realistic. I would be curious to see ragdoll implementation with this, cause falling onto your side when you are moving forward isn't realistic either. Maybe as you get further in, you can create some falling animations (if ragdoll doesn't do that already).
Getting shot makes sense to fall. How about a controlled roll. A soldier coming down from a higher obstacle would most likely do a controlled roll, more than falling. I would keep your falls to accidental things. I can't imagine the mess that comes with AI being affected by this mod. It's hard to keep them in your group together enough as it is. AI will be messy-although they seem to walk through rocks and everything else.
keep up the good work though.