Is it possible that comparing the distance between objects would be faster then comparing collisions/overlapping objects? I guess this would create a purely radial "collision" but if it could increase performance...
If you do it correct it will increase performance a great deal using distance rather than pure collision. Like if you use a distance check to turn off collision of objects that are more than X distance from what needs to be checked. There have been a lot of discussion about this topic and some say it doesn't work. But personally from my own tests and experience, I would still use "Is overlapping" and distance checks, and as much as possible avoid "On collision" if I want the best performance. But again that's just my experience and not going to get into a discussion regarding this topic again, so its just my advice