Simple idea. The more damage you take, the more energy it takes to boost, fly, use and weapons. Weapons fire slower and become less accurate. It would encourage the use a recently suggested "recovery vehicle." In other words, it wouldn't make sense to limp back to a station at 15 m/s when you have 8% hull remaining.

Would this be an NPC recovery vechicle that you call in and pay for it to tow you to the station? That might be a good idea. But otherwise we will just have people doing /explode to get back to the station once damaged.

This is like a previously suggested idea. If you get hit in the engines, your maximum speed goes down and it takes more energy to turbo. you get hit in the wing, manueverability goes down. one of your weapons gets blown off, can't use it anymore. etc.

Magus, regardless of an NPC thing, damage should effect your combat effectiveness.

Once ships become more expensive, you'll begin to reconsider a quick /explode. What if you have around 800,000, and your ships is worth 10% of that. You would be much more careful with it, I think.

"you get hit in the wing, manueverability goes down"

I'm sorry, but I have to say that makes no sense whatsoever. If you get hit in the engines, maybe, but this is space! There is no atmosphere! Wings do nothing!