I like the way Pathfinder: Kingmaker does it where it's carrying capacity for the group and a single group inventory. It eliminates the constant need to shuffle stuff around to keep individuals under capacity. I can see where that might not work with this game due to it having multiplayer though. I'd probably settle for them just putting the actual carrying capacity on the inventory screen though. I'd have never known I could carry double the amount stated before I started seeing adverse effects had I not made this thread. The current system is counterintuitive.
I think they have almost nailed in regard to weight limitation. Your speed is proportional to the weight you are carrying, not like in Skyrim or other games where you can go around with 40 tons of trash just fine, but as soon as you add a feather on top of it you are almost immobilized.