Free aim isn't only for wallhugging. It's also incredibly useful in maintaining orientation. Rave/pic, ramjets, volts, and basically any character would have an easier time hitting fast moving targets, such as orcas or apcs, while also maintaining a stable field of view. It's a difficult concept to explain, but I'm sure most veteran renegade players will agree. For example, I often use free aim when repairing tanks in field since it allows me to see where my character is in relation to enemy tank movements and friendly tank positions.
Additionally, since free aim eliminates camera movement, it prevents FPS from dropping in high-intensity firefights. Since many people don't have incredible graphics capabilities, free aim would be a very useful tool.
On the note of free aim not encouraging aggressive play, I beg to differ. Third person view naturally creates wallhuggers regardless (let's face it, basically every game with a 3rd person view has players who abuse walls). Free aim greatly helps players attack around corners during an approach (imagine a situation in which a shotgunner approaches a corner hugging sniper). Without free aim, the player would have to pan the entire camera to engage a single enemy around a corner, potentially neglecting other dangers. The addition of a V key would allow the player to make more effective assaults, and thus improve gameplay. The absence of a V key would do nothing to address the issue of wallhuggers, while also depriving renegade of a subtle, yet crucial and familiar element.