We have a great deal of open issues/unimplemented stuff regarding relative path mode. It’s not just about file creation.
It’s possible that when we do this, we will tackle all the relative path mode open issues in one sprint. When that will happen I don’t know.
It is unlikely that we implement a toggle in settings that makes the interpretation of where a link points to depended on that toggle. Otherwise, when you look at vault, you would need to know what that setting was to properly reconstruct the link graph (this is bad for external interpretability).
Moreover, if you change that setting along the way, you would need an automated script that goes through the vault and rewrites all the links so that they keep pointing where they were pointing before.