You bring up the same annoyances I find targeting, but I have a different idea for targeting:

Hold down auto-run button to target party members with Up and Down running up and down the party list in sequence with the down button self-targeting first if it's pressed first, and Left and right for general proximity targeting friendly targets outside of party. While using the the Up and Down without holding down auto-run would select between only claimed mobs, and Left and Right selecting through unclaimed mobs.

Ideally, there would also be an option to switch whether holding down auto-run will cycle through PC or mob targets in the config menu so players may set the behaviour to the own preferences.