This is definitely a step in the right direction regarding the defensive AIs behavior as well as improving the attacking AIs movement in the box. However I feel like more could be done. This update obviously feels like something was changed but it's not necessarily enough.
I got around the 25 minute mark in the FC Direct for the 1.2.0 update and the main problem with the game was said right there,
"players are depending on their defending AI rather than taking manual risks to win the ball back. This let's players basically focus on controlling their CM instead of switching to defenders to who just win the ball back effortlessly." "This change will not completely remove those behaviors if someone wants to play this way"
But why? Why should someone be able to play that way in COMPETITIVE gameplay? The defensive AI should not be tackling the ball under any circumstances. NONE. The defensive AI should do no more than lightly track unless they're used in the second man press, in that case they should contain and apply pressure but never tackle or perfectly intercept the ball. These kinds of actions should only be preformed and perfected by the user.
In order to balance this I would suggest removing the assisted option in the gameplay settings. It's far too effective and practically takes user error out of the equation. Removing this option would also reduce the effectiveness and speed of counter attacks.