Of course it works but is not good enough. We had better in the past and I don't see why I should settle for anything less.
Fine, don't settle for anything less, that's entirely your prerogative. Understand that other people disagree with your assessment and can enjoy the NG for what it does give. Personally I don't think 'we' had better in the past, so I'm happier with what we have now.
I lose 3x more time trying to target with grenades and rockets then I should. I heard on consoles these problems are less and only mouse users get to experience them.
Meh... Rotate the camera 180 and then aim it. Works fine. Use the scroll button on your mouse to move up or down, works fine. Yes, trying to throw with the angle behind your soldier gets really wonky, yes they should hopefully address that. However, rotate the camera and I've rarely had any issues with the targeting. I am a mouse user and once I realized how to rotate the camera and change the height I was on all of those issues went away.
The alternative is not worse. You are looking at this from the wrong side. They didn't implement alien movement as it is last. That movement is core feature of the tactical combat. They build the rest of the game around that poor AI and teleporting/spawning aliens. If it was build around aliens being on the map from the start the game balance would have been handled differently and life/defense/aim numbers would have been adjusted. I am 100% sure the game would have profited from different core design based around real AI and real alien movement.
Right, they'd have to entirely change the balance, so yes, the alternative in a vacuum is worse, what you are advocating is essentially an entirely different system which works much better with TUs. They didn't use TUs, I'm glad they didn't use TUs. The cover and one shot per turn (without perks) essentially means that swarm tactics will almost always prevail. Considering you're limited to a max of 6 soldiers while the Aliens can have as many as 20 active on a map means you will run into far more no win situations if you get rushed. The AI is actually pretty solid (other than the overwatch lock bug, but my guess is most people use this without even realizing just how badly it gimps the AI). Try getting into a fight with 4 mobs on a small map where your cover is destructable. You really want to play mission after mission like that?
That said, it would be better if the aliens actually could call for reinforcements a bit, or if their group sizes were just a bit bigger. Fortunately I believe that can be done via modding.