I just thought toggleable auras would be clearer, and less annoying than small icons on the sprite, that are always there, breaking my immerson.
Unless I missed it (wouldn't be the first time), I was the one only one introducing "small icons on the sprite" in this latest iteration of discussion. And I
specifically (or at least intended that I specifically) mentioned that they wouldn't always be there and that they'd be togglable.
Frankly, you've got to put some highlighting marks on there. Whether it be aura, spotlight, tile border, floaty mini-icon or whatever.
Also consider what you do with multiple entities in the same space (all but (at most) one supine, however that gets indicated). If the same side, maybe you don't need to separate the distinguishing graphics, but if there's a battle going on (when this is useful) the likely situation is that one character is stomping on an opposing unit's head. Could it be clearer by offsetting whatever-your-indicator-is down a few pixels for the current underdog? (And layering it behind, to be partially occluded.) Not sure how this would work with aura, except by however you deal with multi-occupancy of the core figures involved, but spotlights, halos, 'shoulder'-flashes, etc could probably equally do this. Which would be good if multiple such methods were used to depict multiple different aspects - though you'd not want (by default, at least) the screen real-estate to get much busier than it's already liable to get.
(I imagine, if the work goes into testing each method, that there could be a selection available in user-options. If they prefer a ground-spot over a halo/etc, they can choose that. And "always on/always on for military only/on during any hostile presence/on during sentient hostile presence/on for those currently|recently caught up in combat reports/on during military-management mode/never", or probably just a subset of that. But I seem to think that's already been put forward in a slightly different context.)
...aaaand, ninjaed by Meph with as good a clarification as any.