Honestly friendly fire should just be made the way it works, and then with that added need for players to be tactical with aoe effects I have little doubt rebalancing especially high end content currently loaded with bloated HP punching bags could be done.
Not only that but it could finally end loot drama as if people really want to argue over something they can duel for it then and there with the party to watch on.
Sure it will put sword swingers under the service of the casters, which would be great for RP atmoshpere as far as that aspect goes. Self made gawds should be able to rule over and be masters of the warriors.