Spotter scope adds value in three ways - live pings, spotting players automatically, and automatically reading distance.
Dynamic/live pings on moving enemies is far too powerful, and prone to error. Too powerful because it robs you of the ability to rotate, use cover, and outplay opponents without telegraphing your movements, and because objects or terrain that you could normally use as cover will lose too much utility. Prone to error because it's able to track and see players in a way which humans wouldn't be able to - continuously tracking a player due to a single pixel being visible through cover or terrain does not mimick human vision.
A tool which spots players for you does not add fun to the game. The skill requirement of target acquisition is removed, and you're now much more at risk of being spotted on any kind of rotation, no matter the visual cover or sensible distance.
The distance read is fine, if gimmicky.
The two main features of the spotter scope are what make it worthwhile, but they're also too OP. They need to be removed, and the scope itself needs a rework or to be canned. Maybe it could be reworked into a side arm that reads distance only, but that just makes it a novelty/trash loot. Better to remove entirely.
TL;DR: Spotter scope is anti-fun and antithetical to the hardcore, fair, skill-based gameplay of PUBG. It can't add anything of real value over a 4x scope without being overly powerful, therefore, it should be removed.