The AI in this game is more realistic than any other FPS game I've played, granted on low difficulty settings it's crap but try something higher. As for transparent walls, I have not seen any either. Enemies don't appear after you kill them, it was probably the guy's friends/team coming to get you and you were not paying attention to how many you were fighting.
The 3 endings are Good, Evil, and the 3rd which is sort of evil is to let Master Li kill you in the end and not fight him. It's a dialog option in your chat with him before the final fight. To get the evil ending you must leave the dragon's body alive(well as alive as it is) and defeat Li.
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