Follow distance idea comes from Fallout, where you could set it by talking to your companions.
In D:OS, it could be done more naturally by pulling on the chain linking the characters's portrait. That would be particulary practical once the party gets bigger, if we could modify their distance to each others just by positionning the portraits, and chain/unchain them to the group with a SHIFT+CLICK command maybe.
Also, I think being able to properly set our group's formation is kind of a requirement to have proper tactical fights. And I agree with the "initiate combat rounds" button suggestion.