I'll give you two scenarios and you make your own judgments. I think the system needs alot of work to be honest.
Scenario 1:
I'm riding down the road and I see a camp alongside the road. As I approach I hear someone in the camp cry for help, and then I hear the sound of someone dying. I stop and there was another NPC that killed a man. When I approach he says "You don't want to concern yourself with this." So I move closer and he draws his gun, I then draw mine, he starts shooting and I kill him.
Two passerby's are coming along and they see me and two dead bodies there. I didn't move, I didn't loot, I didn't pick up any bodies. I froze looking at them. They didn't ask any questions and the Investigating started flashing and then boom, Murder - Arthur Morgan.
That is a problem. I was defending myself and he shot first. They didn't even let me explain ..I didn't make any sudden moves at all. No questions asked, just flagged me for Murder.
Scenario 2:
I crossed a pretty wide river and set up with a snipe rifle on the other side of a river in a hidden spot inside of a electrical tower structure. I crouch down, get out my rifle and wait. I watch in the distance (and we're talking a pretty far away distance), two men on horse walking on the road.
I set up my sights, aim for one of the men and take ONE shot. Boom to the head. Killing him. I took out my binoculars and checked and he was definitely dead. I did not fire any other shots.
I get the Investigating flashing for a GOOD 30 seconds and then it changed to Murder - Arthur Morgan. Within 10 seconds, I turn around and there are 6 lawmen behind me on horseback.
UMMM WHAT? Are you serious right now? There is no way they knew WHERE I was or that it was even me who killed the man. I was very far away on the other side of the river.
This system needs some serious work.