There used to be a 'Render First Person' option in the menu, but it didn't work. If you turned that on and some setting in the player datablock then it almost worked, showing your hands fine, but if you had a hat and looked too far up or down then it basically went through the viewpoint and looked odd.
It looks good if you hide everything on the body except your hands and feet when it's turned on, but we'd need some kind of engine/client change to make that happen automatically instead of having the other parts hidden to everyone.