I absolutely agree with the OP. Everything he mentioned is just right.

Something as important as characters and party control can't be allowed to be this bad. My guess is that this is done so people who play with a pad can play casually without nothing to worry about but it's not a good way for anyone playing RPG on PC with a keyboard and mouse. The fact that you can't even select your whole party with the mouse dragging a square over them or select a party formation with your melee characters in front and the healers or ranged in the back is awful. This party movement triggers a lot of traps and puts your party in danger in some situations.

I would like to see any explanation by Larian that justifies this.