I partially agree, but the problem is that the miss rate is so high that any "strategy" to wipe out enemies in an efficient manner; For example, having a thief and a mage attack Imp A and a more powerful Fighter attacking Imp B on the same round, is likely to fail because your fighter, mage and thief all have a ~40% of chance to miss their attack, reducing this "strategy" to nothing.
Choosing to double up your attackers in case one of them misses is a strategic option. Or you can be "risky" and split them in hopes they'll both connect. It forces you to be more familiar with how well your characters perform, how much damage you've dealt to said enemy up to this point, how much life he has left, etc *.
These are all things that bring you into the game, make you pay attention to what's actually happening, and make you plan and strategize.
Contrast this to auto-retarget where there's no reason not
to double-up, so you can just double-up every time and always win every battle as fast as possible without really having to pay attention to what's going on or what your characters are doing. It takes an engaging battle that you actually have agency in, and turns it into a mindless "hold A to play" snooze-fest.
That's beside the point that your characters missing frequently is only for like the first 1/10th of the game. Just before the Marsh Cave (or just after, depending on how prepped you are) your fighters start doing two hits, which drastically
reduces their miss rate. Keep in mind... the Marsh Cave is the first real dungeon in the game... so this is really a small portion of the game as a whole. And by end game your knights/masters/ninjas never
miss... not even against high-evade enemies.
And in fact.... I would argue that early-game is the best part of FF1... because it's before your fighters become mindless "always hit" goons. And it's before your mages can spam the Zeus Gauntlet and other "free spell" items. Once you get the Zeus Gauntlet in that game, it becomes just as mindless as every other FF game. But before then, you really have to think.
FF1 would be greatly improved if you keep the "ineffective" attacks, removed the multiple-hits mechanic, removed the free spell items, gave mages more spell charges, and re-balanced the enemies around those changes. Make every fight something where the party has to consider their options -- think about if it's worth it to use that spell charge or not -- think about how many hits it'll take to knock out that Grogre, and how many attackers you want to put on him.
Not just "put fighters on the big monsters and have your mages use the Zeus Gauntlet and Mage Staff to wipe out all the little ones" for every.... single.... fucking.... battle.
* A great example of this is the OddEye/Sahag fight in the ocean. OddEyes are physically weak, so one hit from anyone is likely to kill them, but if you miss, you risk being stunned for a few rounds while the sahags pound on you. So do you have everyone gang up on the OddEye to make sure you take it out right away? Or do you split up and work on the sahags as well? Both approaches have pros/cons. Both have risks. And it's up to you, the player
to choose the best plan of attack.
With auto re-target, just always gang up on the OddEye because there's literally no reason not to. All thought and fun removed.
And mid-late game? Just use the Zeus Gauntlet. Snoooooore.