Most likely you will end up with a code, that kill all instances when they fight because they all end up doing damage to everyone, or a code where none of them will not bother to do anything. You can also tell one of them to take damage during the overlap based on their alterable value, but then you can not tell, who is the one attacking. Sure, you can tell, that only instance 1 should attack and do another child event, that will tell instances with value 2 to do the same, but you can not tell them in the condition, that their target should be instance with value 2 or the other way around. or however you tell them to lose health in this case.
I am sorry, if this is an unclear example, but when you have something like instance overlapping another instance and you want to make them fight as team 1 and 2, you can of course give them alterable values 1 and 2, but
I kinda get that, but I was hoping the instanve value would be the long awaited way to make instance to instance interaction possible without using costly foreach loop paired with alterable values that limits unit counts because of how costly it gets to tell them apart.