By the way yes, I remember that a formation system was there in DOS 2. I still have painful memories of how inadequate and ineffective it was, too. It's not a coincidence that people hardly paid it any attention and most don't even realize it's there.
I like your style to always speak on part of the whole humankind Tuco! Personally, I used this system to a great effect (Yes, you may make a personal comment about it). It allowed you to put your melee fighters up front or on the sides, and put your ranged characters on the back line. All in several different ways. What more do you need?
It was poorly implemented in the UI (hidden in the pause menu) and there was no tutorial about it, thats why it was overlooked by the community.