Yeah, it definitely felt a little bit like I was re-evolving Chainmail while I was working on it.
For Unreliable characters, yes they can target themselves. Whether they do or not depends on where they're placed and who else is in the Unit. Likewise, if they all betray you, it isn't a guarantee that you'll lose the fight. It depends on which characters you have and how they're configured, although it does tend to tip the odds.