Well in my opinion it should be a visual indicator, like the original one for example; by the way, thank you so much ginnerchris for uploading the damage indicator on the other topic, very grateful to you!
Unfortunately with CSM mods it doesn't seem to work, probably because the gpxpatch tool prevents the tv overlays from being shown, unless they are configured together with it as panels; that's why I think it should be conceived as a visual damage defpanel, in order to make it work with gpxpatch system, perhaps it's possible, but we should find the proper method