Obviously, I'll continue to play whether they ever improve the auto battle or not, cuz I enjoy many of the other elements of the game, but I think improving the AI battle skills would be a great and overdue thing.
Many of us don't have the time (or desire) to fight manually, I personally find it to be a really tedious exercise, but I can understand why many people love it. At the end of the day, IMO neither group should be penalized for a simple choice of preference, or for having a more limited amount of free time to devote to it than others
The great thing about FoE is you have choices. As in all things, the choices you make have consequences. The choice to Autobattle means the choosing to save time at the cost of losing units and battles due to a crappy AI. The choice to fight manually or semi-Auto, as I do, means better results at the expense of time.
For me, sometimes manual fighting is as simple as moving my real unit to the side then Autobattling the rest, sometimes it's moving my real unit to the side and moving my Rogues forward, then Autobattling the rest, sometimes when attrition is high, it means manual fighting the whole fight to move injured units to the side as needed.
Another benefit, for me, with this method is being in CA still having yet to build Traz. Losing so few units, I've yet to have the need, and can use the space for FP production having all my unit needs fulfilled by other methods.