Frankly, when in difficulty options, you select OFF enemies shown on map, then enemies should NOT be shown on map at all, ever, under any circumstances.
What currently happens, is they are shown on the map just as long as your squad's AI hasn't positively identified them as enemies yet. (stupid). A player can use this to their advantage, for example, spamming HE projectiles toward a map location containing those markers, because he has identified them as not friendly, even though the ai hasn't yet.
Also, there should be a separate difficulty option to show the player's position on the map, as a separate option from all other entities.