The way we're handling this is that you can "target" any particular "thing" within your line of sight, and then move towards it, away from it, circle around it, etc. Thus in the case of a swordsman vs an archer, they would target each other and the swordsman would charge, while the archer retreated and fired. If the swordsman got too close the archer might instead target the nearby forest and start running as fast as he could.
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