This option would be, at this point you are immune to damage during conversations.
I don't see any sense why the rest of your party might be dying during this time.
At least now you are able to switch to another character in most situations
The battle was over in my example and the system immediately went to a cutscene. I did not see any option to change to another character but even if I did, I ASSUME that this means I would miss the cutscene (which I enjoy).