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Most police in a gun fight, they would try to duck out, not just stand there, and if they felt their lives were threatened, they would run.
There you have a difference between a GAME and REALITY. In the latter, your enemies would run away rather than fight. But that'd be pretty dull in a GTA-style game, wouldn't it? Some things are made specifically contrary-to-reality simply to make the game smoother or it'd just be too much of a bother to make otherwise. I mean, the cops are a relatively small part of GTA.
Now in a game where the enemies are the ONLY part of the game, like Halo/Socom/whatever, an intricate AI is what makes the game. Completely different from GTA - it's comparing apples and oranges.