Along the lines of the above suggestion, there have been other comments and suggestions that have been made, as well as some answers we wish to post up on the EN forums. (And I'll make sure to pass the above along, too!) The following comes from the main person in charge of the UI, Minagawa.

The party members list is too small. I think there are some people who have said if it was made too big it would get in the way, so please allow us to change the size as we like. Also make it so we are on the top of the party member list.
We plan on addressing these aspects, but since we are unable to implement them with the current system, we will be proceeding with this once fixes have been made to the basic portions of the party member display. As soon as these are finished we will address them.

When attempting to cast Raise on a player who is K.O.ed, I use the up and down key on the gamepad, but I would like you to make so that it skips the players who aren't K.O.ed and only select those players that are.
We are actually currently working on implementing this.

The behavior for party members that are just slightly too far away is pretty strange. When selecting Cure or other actions and targeting players that are a bit far off in the distance, they are targeted for a moment, then the target is forcibly removed, and the cursor returns to the action bar.
When the distance in which you are able to target them is exceeded, the cursor is set to return to the action bar. It can be thought that you are right on the border of being able to target/not being able to target, so try bridging the gap just slightly.

Not only for the party member list, but also for the information displayed for party members in the system menu, you can’t get any information on classes or HP/MP for players that are far away as it is displayed as ????/????. Can you do something about this? I’d really like it if you could display which area that player is currently in as well.
Addressing this immediately is a bit difficult, but in the future we will be addressing this so it is possible to see which area they are in and all of the party member’s information no matter where they are.

It would make it a lot easier to understand if you could make it so each person's class icon was displayed next to their HP bar.
Though this a feature we're discussing for the future, we will be making it so not only the class icon is displayed in the party member list, but other information as well. We’d like to make it so you can customize what you would like displayed.

Regardless if you are selecting something or not, the orange selection box often remains. It's confusing when 2 or 3 orange selection boxes are displayed.
The development team is looking into this phenomenon and is proceeding with their investigation. I apologize that I cannot make any promises about specific timing, but whenever there is some progress I will be sure to let you know via forum or topics.

Thanks for the feedback and we look forward to hearing more.