Basically the performance of P2P greatly depends on the involved relay server (depending on where you live). Some people have little to no problem playing via P2P, while others might run into a lot more problems. It's great to hear that P2P works fine for you 
A classic LAN game (despite its name, it can be played over the internet) or a dedicated server has less overhead than Steam P2P, but unfortunately their setup requires more work (port forwarding when hosted on your pc etc). Setting up permissions for a dedicated server can also be more time consuming, while P2P simply uses the game settings of the host.
But in general, however, P2P and dedicated servers are solutions to different problems: if someone just wants to play with friends, he should use the P2P option. If someone wants to host a public game, the dedicated server is the right choice.
Sometimes the players on the map freeze on 1 position
This indicates that the world (or more precisely, the relevant chunk isn't loaded). If it's always happening at exactly the same position with no way to fix it (i.e. if neither reconnecting nor modifying the chunk helps), the chunk might be corrupted. If it's only happening sporadically, it's most likely a typical limitation of P2P: if there is too much pending data to send, Steam unfortunately just drops the packets at some point without notifying the game about it. This results in clients waiting indefinitely for the chunk data (so the chunk never fully loads, and once a player enters the chunk, the game freezes him to prevent him from falling through the ground). If this happens, clients can re-request the chunk by typing refreshchunks or even refreshallchunks - this usually solves the problem.
Having said that, the next update will introduce some changes which hopefully mitigate this issue.
when a player dies the body will glitch out and the texture will make mega big shards and anything idk
This is a bug that happens mainly in multiplayer... it's not related to P2P or dedicated servers. Unfortunately we haven't touched it yet... but it's on our to-do list
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