So they can't beat brain dead AI if friendly fire is on? How does that work exactly?
2 basic cases:
1) AI of your team is so wonderful, that your companion decides that using minigun in narrow corridor is great idea, even if other team members are between him and the target (Fallout 1&2, actually 2 mostly , with Marcus). No, permanent AI turn off is not really good option for many gamers (me included). Telling every single person, every single battle, what to do, even if it's rat-killing, is simply boring and not really helping to stay in the role of single character. I can take control of a party if threat is serious, but not every god damn fight.
2) Bystanders, or opponents AI is so great, that seeing their action I simply don't know if this is easter egg, or AI is so damn stupid. Another Fallout example: there was a fight in a bar. One of the customers, a woman,got hit, fled, I killed one or two fellows and the fight mode turned off. The very same lady walked in ten seconds later, passed next to me, only to enter fight mode and flee using second exit....