I mean, two people of opposite gender, you can describe their interaction as “he said this then she did that, so he did whatever which she found…”-without having to repeat their names or descriptions. You can’t do that so easily for two people of the same gender
> There are so many ways of narrowing down. What if the person is talking about two friends or two strangers?
The grammatical distinction isn’t about friend-vs-stranger, that was just my example - it is about topical emphasis. So long as you have some way of deciding which person in the story deserves greater topical prominence - if not friend-vs-stranger, then by social status or emphasising the protagonist-you know who to use which pronoun for. And if the two participants in the story are totally interchangeable, it may be acceptable to make an arbitrary choice of which one to use for which.
There is still some potential for awkwardness - what if you have to describe an interaction between two competing tribal chiefs, and the one you choose to describe with the obviative instead of the proximate is going to be offended, no matter which one you choose? You might have to find another way to word it, because using the obviative to refer to a high(er) social status person is often considered offensive, especially in their presence.
And yes, it doesn’t work once you get three or more people. But I think it is a good example of how some other languages make it easier to say certain things than English does.