Could also be more clear with the outlines of spells I think, more clearly outlining who in particular will be hit? Allies glowing gree and enemies red if the spell will hit them? Just throwing an idea I've seen in another game out there.
And yeah, Friendly Fire us actually important enough in how it keeps things in check so one doesn't always blindly fireball or explode powerful aoes. That and being able to hit an ally can be a way to break a charm or waken them at a range or other weird situations.
