I choose both because it's possible for both. If you are using a projectile weapon, then no, the hit should never be instant.
Quick reason why:
The other day I was playing titanfall. I just happen to jump up to spider man off a wall when in the split second I was in mid air I saw the trail of a sniper bullet pass under my feet. The fact that I missed being killed by a tiny fraction of my perceived time, and that I just jumped over a bullet - that feeling of realism gave me goosebumps. I want that in destiny.
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I agree with you, Ballistic Style hit detection lends itself to epic close calls. I feel if Bungie threats most guns like the BR from Halo 3, with very high speed travel time, but not instant like Hitscan, there could be a good mix of responsiveness of the guns, but a fair chance to get away from enemy fire. Halo Reach suffers from Hitscan in that being caught in the open even shortly is nearly a death sentence. I feel if Ballistic Style were implemented this problem would be solved.