I have used the withdraw command on several occasions and have never had the troops involved break or panic at the end of the withdrawal. They leave the area immediately with no delay and if they are in woods, houses, or other suitable cover, they frequently break complete contact with the enemy before loosing any men at all. Machine guns are a different matter, and do just seem to "walk slowly away" which often does lead to them taking additional casualties. With squads, however, I have had them withdraw and later in the scenario, successfully perform attacks in another place, or other normal duties. Try experiementing around with the command-I think it definately has it's uses in certain situations.