Yeah, while the aiming isn't THAT bad, the spotting seems utterly broken.
Yesterday I was playing a mission where the OPFOR AI was set to 0.35 and BLUFO AI to 0.4.
While patrolling with an AI squad (me as SL) one of the soldiers reported "Enemy Infantry 1.5 clicks (1500m!) west. Looking in that direction showed a big mountain at about 700m. Checking the map to see where they were, and found out that they were in the valley BEHIND THE MOUNTAIN!
So it doesn't seem to be an issue with AI skill levels being to high. It rather seems like AI vision is X-Ray superpowered at long distances.
Worthy to note is that AI spotting skills seems to work perfectly fine at Close Quarters. If I sneak around a corner and see an enemy 10m infront of me, it takes a second or two for him to detect me and shoot me. Just enough time for me to drop him first. This on the same skill levels as above.
So it feels rather easy, which is exactly how 0.35 should feel like.
Running headlong around a corner still gets me pretty much instakilled, which is also as it should be I think.