Is it really that hard to use the current system? Up-Down to select target type, Left-Right to select target of chosen type.

I know a number of people who like the new system that SE has implemented.

However, I don't disagree that a parallel system that allows you to do the same thing but in a different way for those that want something different is not a bad idea (you could easily set it up to choose which you want via the Configuration menus). A filtering system would allow more flexibility rather than setting just one target type, and could be useful for those that like to target both party members and mobs (eg: mages).