My Israeli teenagers tell me that it's never used in everyday life to mean that you are dating someone. But grammatically it is correct.
How is this not the same as "Are you and she seeing each other?" in English. If it's reflexive, it's reflexive.
non-native guess -- the verb is singular. Otherwise it's אתם מתראים זה עם זה, though I don't know if they actually say that. (more specifically אתה והיא)
I wasn't sure what the connotations were. as opposed to the denotations, which you provided me with.
Question to native speakers: is this really used in everyday life in israel, and what for?
Does this verb have to do with seeing someone/something with your sight or does it have to do with meeting someone?