They handle it fine. We use it as training ammo for our patrol rifles (M16A1s, no fun switch). We have several hundred rifles in use, each one with many many rounds of the Hornady stuff down the pipe. AFAIK, no issues with the ammo. The only malfunctions I have seen were magazine-related (replace the bad mag, the problem vanishes).
Now, the rifles are cleaned thoroughly after a training session, but some of our training sessions have involved hundreds of rounds through each gun, so it's not like we're babying them. Cleaning wasn't a huge deal, either. Not like there were pounds of sludge in there from the lacquer.
I just bought a couple thousand rounds of the stuff, myself.
Mike