MisutaaAsriel
As VRChat has just introduced its item system, it may still be trying to find its footing and determine what to and not to allow, and how to provide, items going forward.
As part of this, I suggest VRChat add the ability for items to
be marked as "player only".
What this means is:
  • Player-Only Items are
    only
    visible
    to their owner,
    regardless of any safety settings.
  • Player-Only Items may access an additional set of properties of their owner, via Udon & Soba, which may not be available with "public" items.
  • Player-Only Items may attach themselves to the player HUD, provide additional utility, interact with the VRC Camera, etc. via Udon & Soba, which most certainly
    would not be available to normal items.
  • Player-Only Items
    cannot
    interact with other players.
The intent of these features would allow VRChat, and potentially users in the event of UGC, to
provide new "utility" items, similar to the VRChat camera or VRC Player Mirror,
which aim to enhance the functionality of the VRChat client.
Existing systems, such as the camera and mirror, could even theoretically be migrated to such an improved system, providing a uniform way of spawning objects,
whether or not they are local to the spawning user.
Other possible enhancements could be to provide a separate subsection, similar to the "Exclusive" item sections in Stickers & Emoji, for "My Tools", with a subheading of "Visible only to you", where these Player-Only Items would be stored.