Essentially, "The Battle" is our only plotline ever where FTL sensors for conducting combat would not seem to be in evidence. And even there, their lack is only implied in the brief Picard Maneuver, not in the overall conduct of the battle.
It shouldn't be all that fruitful to start claiming that FTL sensing is generally absent, then. Nor does the episode pose significant problems on assuming that FTL sensing was temporarily knocked out (again, remember Picard's false but supposedly convincing log about mistaking a sensor cluster for a weapons array?).
Of course, the Maneuver would work just fine in an all-FTL environment, too, as long as the ship was faster than the sensor beams. Sensors working at warp 8 would probably be fooled by a warp 9 dash even more extremely than sensors working at LS would be fooled by a warp 2 dash, considering the nature of the warp scale.