I usually don't like Friendly Fire, however as long as the game lets me see who/what will be hit/effected by AoE spells then that's fine. By seeing who/what will be effected/hit, I then get to make the decision as to whether I I want to use that spell/skill or not.
My only hope is that the AI is also programmed to try and avoid any 'fields' that are in play - for instance, I believe one of the wizards skills drops a fire-field on the ground... so one would hope that npc characters would try and avoid it if they weren't in it already (unless they had no choice but to go through it).