The donator could easily just turn godmode off and let the taunt kill him, ridding himself of the endless loop of being "taunt killed" without dying. You now have one death on a trading server, whoop'dy doo! Plus, pyros can still airblast players while under the effects of !god, not like anyone blocking spawn is too much of a problem.
If those are the only two concerns that came with player collision then I'd have to side with turning it back on. I loved getting huntsman kills. Otherwise, if there was an underlying issue that I don't know about and makes relative sense, I won't mind too much if it's off. Doesn't really effect my judgement too much because let's be honest, it's a trading server.