Liniont and Halvaard_Vidan, as ChiefCurrahee tried to tell you multiple times already: You are missing the point.

The target filtering is not a problem (except for the annoyance of valid targets not being filtered properly, fixed in 2.0)
The order in which you cycle through available targets, is. It simply does not make sense to target that Ixali sticking a sword into your belly from the left after you target that wolf watching grass grow 100 yalms away to the right.

You can't say "well, just use mouse". That's not the point. If they are offering alternative control schemes, they should implement them properly, or not bother it all.