In its current state, mugging is only used to punish people for training their pickpocketing skill and I believe that this is silly and there should be a more strategic use for it.

Mugging, in the real world, is generally a multi-assailant ordeal. I do not believe it should be a reaction for pickpocketing. It should be its own entity, but share a timer with pickpocketing and require at least one other person to carry out. The strategic benefit of this would be that during war you could get together with a buddy or two and mug a CL while they're whack proed, locking them down in the hospital for a while and potentially taking millions from them. 

The new mugging stay could use a combination of the intimidation and physique stats as well as an independent mugging stat that is trained solely by mugging. Each member of the mugging party's stats would be combined because mugging someone with 200 BGs would obviously be harder to mug. Perhaps even give the person being mugged a chance to mug his/her assailants in the event of a failure.

Why would you have an issue with making wars and mugging more strategic? Putting random people that PP you in the hospital is far less strategic and useful.

I don't mean a literal hospital stay, it was for RP purposes. Mugging would have the exact same effects it currently does and still be useable on anyone. The circumstances for which you could mug someone would change though and it would become a useful tool.

4 hours pp timer for the assailants if they are successful, 2 hours if they're not. 6 hours on the victim's flight timer if successful or triple the normal cost of a private flight. 

The current timer for being mugged is 6 hours though, iirc. Either way though, any amount of time being locked down would be strategic. 

+1 for me.