Slow speed is bearable on small maps, but here it will turn into boredom. I would accept it if there would be some fast travel option, but this is not the case.
As for formations - we are not trying to arrange an army, only 4 characters. I don´t think this will be a problem. If you are in a tight spot you simply switch to more suitable formation - like 2x2 or 1x3. Pathfinding may be a bit difficult, but in Baldurs Gate you had 6 characters and they still handled this. If terrain was rough, they simply found closest position to the "ideal" mark of selected formation. Or there may be an option to enable/disable formations.
