Or does t still hit everyone?

Isn't it supposed to hit everyone? It would be kind of stupid if it magically knew to avoid hitting your companions, or innocent bystanders.

No it is not. As such it is still useless to use when fighting anywhere where there is an npc you want to avoid killing. That matched with how much damage it does makes the coolest, if least useable dragon shout. Still.

It is a great shout to use when you are not around a companion and you have a crowd to handle.

but honestly besides mods there aren't many situations when there are large groups to handle in wide open areas. I mean I can think of one or two areas where there are bandis that are outside nowhere near and npc but other than that most groups are found in dungeons.

Forsworn camps.

Doesn't the shout work in doors? I thought I had used it in a dungeon once.

Besides, there are a lot of Forts and Forsworn Camps to visit mayhem and destruction upon.

Works in Blackreach.

Northwatch Keep for the epic win.

In before "Working as intended."
Edit: Kind of..

Forts, Forsworn camps, Northwatch Keep, Imperial/stormcloaks camps, giants camps, middle of Solitude , on the top of a mountain just for fun, etc. Be creative.

Friendly-fire is a concern with any other spell or shout in the game, so why should Storm Call be any different? I.e., there isn't anything to be fixed since it already works as intended. The only problem is that since it's so powerful, friendly-fire oftentimes means friendly-death (or at least a kneel down). As someone wise once said: With great power comes great responsibility.