Very entertaining video to watch, a few pointers.
Kneeling a solider costs 4 Time Units, but makes their shot more accurate. If you can get into cover and then aimed shot at stuff, you may have more luck.
Consider carrying more gear on your team, look in the advanced options for "Show inventory stats" or something similar. It means you can see how heavy the gear is they are carrying and addon extra stuff until they are at capacity, aka spare clips, grenades or more rockets.
Give the rocket launcher to the few soliders with more than 60 Firing Accuracy and 30+ strength. More strength means they can carry more rockets. +45 strength means rocket launcher, and 4 large rockets. Many kills, much death on their side.
Sorry I had to LOL at the friendly fire situation. I like your banter and look forward to your next missions :-)