[...] instead of all the companion quests leading to the same final area of the game where everything related to their personal quest 'coincidentally' is located. I feel this also helps set the scale of the world and adds an element of realism to the companions' respective stories.
Exactly this. The fact that you will inevitably run into (and even solve) a companion's personal quest simply by exploring the map and advancing main quest makes the whole thing feel forced. They can do something such as having at least one entire location on the world map dedicated to a companion's quest, and only revealed if you talk to them and accept to help them, and so on.
The DOS2 style in making companion quests is just another obstacle that makes it harder to create more companions. Sure, it's great if you can make epic companion quests that spread over several chapters, but if this prevents you from creating more companions, then... I'd choose the BG2 style.
Never used NPC party in IE games.
Always created my own. Way more fun that way.
IMO.
Oh, come on. You're missing out on a lot. Full custom party is only more "fun" combat-wise. You would be missing all the party interaction and personal stories and all that. You know, social stuff. Ironic, since I myself am just not a "social" person. Or maybe that is exactly why I like the feel of companionship in RPG's. While I enjoyed IWD well enough, the full custom party could feel a bit... dull.