Baldurs Gate was originally made with the idea of translating a D&D to video games, so it's kind of crazy to abandon the system like that. And you basically just described an arpg
Sure, one cannot completely change nature of D&D when making game based on D&D structure. I was talking on RPGs systems as a whole.
I call bullshit on claim that one can analyse battle situation of 10+ characters all making attacks, activating abilities and casting spells at least once every 6 seconds. Hell, in modern titles (Kingmaker) preventing units from activating bunch of opportunity attacks and killing themselves is a nightmare alone, not to mention doing anything coherent, unless dice is already in your favour (and therefore it doesn't really matter what you do).