Dusty
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In the second scenario, observing another player (an opponent) battling against AI/neutrals is akin to cheating, as it provides accurate information about the opponent: their skills, troops, spells, and artifacts (the last two points are not always the case, but possible when they are used).
The same applies to the first scenario. Exception: perhaps it would be possible to organize a viewing of a battle with an ally.
PVP battles in alliances don't work. But it's a great feature, so we want to fight for neutrals :D. Therefore, we play against each other, remembering the flags (not without some mishaps :). We constantly discuss the battles, creating a picture of the battle in our minds.