Actually the AI in that game were actually made pretty smart.
If a grenade was thrown at a squad, sometimes a brave soldier would dive on the grenade to save the squad.
They also regroup and defend each other.
Also the dog will pick up grenades and run towards you until they blow up.
My only major beef with MOH was the levels where every enemy had an antitank weapon where a tank could'nt even fit.

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"NO MISSION TOO DIFFICULT,
NO SACRIFICE TOO GREAT,
DUTY FIRST, SIR, DUTY FIRST!"