Yep - you have it in one with the 'encounter model' primarily used in the game - hidden model ambush.
This system was old on Space Crusade the Board Game, or Ice Wind Dale 2 on PC - by now, every time I see 5 extra wolves or skeletons pop out of the ground because I talked to some random solitary power figure *I just feel embarrassed* for Larian Studios.
This game has nothing on Baldurs Gate 2, Wasteland 2 or any other game where you can see your enemy ahead of the battle and plan accordingly in a non cheesy manner. (i.e.: don't carry 4 oil barrels and drop them using stealth before battle)
In all honesty, I think Larian should go back to single character full 3d RPGs.