I think nerfing the base damage is a good idea and will balance the issue. However, I don't think the mechanic should be removed as I've seen a lot of others saying. After all, it is EXPLOSION damage. It destroys the material it hits, so it makes sense that you'd take damage from a rocket/grenade if you're right on the other side of that wall.

The only reason explosions are seen as OP in this game is because the game is less of a shooter and more of a builder. Rockets destroy what you can build = people complain that they're OP because they spent hours in playground practicing their muscle memory. Not everyone has time to do that. If anything, building is the OP mechanic in the game and everyone gets butthurt when epic games does anything to try to balance that and make the game more easily accessible to the average player.

Unpopular opinion, prepared to be down voted.