The idea of Prisoner's Dilemma has always been this.
An individual will always be better off Betraying. Of course, if all individuals think this, they will end up worse off, (although better than if they had chosen to Honor while the other chose to Betray)
Because of that, the most likely occurence is for both to Betray, which will happen in almost all occasions. (If either team chooses to honour, they will be ridiculously worse off here).
There will be no situation where it is better to Honor for an individual. However, two Honors is better than two Betrayals, which benefits both teams.
If there has ever been an alliance card, its this one. I personally would prefer two Honors over two Betrayals, but that runs a huge risk, and it isn't always worth it to run it.