I think the reason it works is that the server never checks to see what debuffs the projectile should have had when doing it's predictions on whether the player has been hit. The server seems only concerned about damage in such cases.
---------- Post added at 03:05 PM ---------- Previous post was at 03:03 PM ----------
As such blocking the playerhit packet effectively eliminates debuffs. The reason we don't get kicked right away would probably have to do with the fact that in the real world we have packet loss and is impractical to kick when a single playerhit packet doesn't show up.
---------- Post added at 03:06 PM ---------- Previous post was at 03:05 PM ----------
Also you will get kicked eventually but it takes a lot of debuff hits to do so.