Wait, specific formations disable bound and overwatch? And for [3]? Different formations will change how the AI after contact has been made?
I appreciate how the AI takes cover and moves as a unit, but when the AI is adamant about moving slowly and in cover when you, the squad leader, are trying to get them out of danger; it gets a bit frustrating. Perhaps I'm still used to OFP's danger mode where AI would walk cautiously and go prone but sprint to keep up with you.
In terms of leading an AI team, a "form up on me" or "combat movement" mode would be great to force AI to keep formation while keeping combat awareness. From what I understand, giving move orders to AI in danger mode will override the AI's desire to move slowly/hunker down in cover, but it's a bit cumbersome having to micromanage AI movement.