If you both share the same army you can't be Allied....its quite simple. To be allied, you actually have to have armies to fight the enemy with.
The only confusing part was "Allied Team" + "Team" originally. They both had the word "Team" in them, and as such it caused confusion. "Team" or "Alliance" should not be confusing if you have played RTS's before. Throwing another type of Alliance in that questions this normal line of logic is what got us into trouble.
But "Alliance" and "Shared Army" are not similar at all. Its hard to get them confused in my opinion (none of the words are the same). Plus, if someone ever gets confused, they can always move the mouse over it to find out what it is. The tip system is quite extensive at this point.
EDIT: Sorry for seeming firm...either way, I am going to leave it like this for now. I do like your idea...but lets wait until we see some actual releases. I doubt it will be as confusing as it is now, so that is certainly an improvement.
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