If someone throws a Pico at you, can you catch it with the tractor beam?

Yes, you can. You can actually catch a grenade and send it back, which I have done, which was very satisfying. Like I said, if it's a rigid body, you can catch it and use the tractor beam on it. So, yep. The grenade was fantastic. The other person just didn't know what to do, and it was like, what? It just detonated. I've actually used it to pick up guns and float them to other people, and they've been able to pick them out of the air as well, because you can interact with it.

So you still have all the interaction prompts; they don't get disabled.

Yeah.