It's a first! People are sticking up for me!
Well Mr AEO - perhaps you are indeed behind the curve on this one? There is nothing wrong with relaxing with your division etc. In my experience over quite a few years at sea, familiarity CAN, and very often does, breed contempt - it depends on the people. And officers should be able to interpret the situation accordingly. That is supposed to be what sets them apart (note I am not saying 'better'). You may disagree, but it is indisputable.
When it goes wrong, it can go wrong badly and make your position totally untenable - I've seen it happen to others enough times and it usually results in embarrassing scandals, massive loss of credibility and/or a sacking. I appreciate that standards might not be quite so high in the AEO world!
I've been out for more than a few beers with many senior rates and thoroughly enjoyed it. But I went home when I knew my time was up. It might seem old fashioned and I suspect AEO would look at me with disbelief, but when you go out in a group from work in the forces, you still wear your rank/rate whatever it may be.