Nah probably I just don't know how to use it.
EDIT: I have a possible bug to report. With the "everybody fights, no-one quits" enabled, when my base was attacked, the game seemed to hung up during the equipping phase (couldn't get it to display anything else than my dog), then, after a couple of minutes, mission started, giving me no possibility to equip soldiers (the initial health damage mechanic, however, worked!). Regrettably, the attack came out of the blue and there is no save.