I unironically would like to play that. Believe it or not, that's how original D&D (up to AD&D 2nd Edition) was supposed to be played. People who believe Old Skool D&D is turn-based as seen in videogames are wrong. D&D comes from wargaming, where the players announce what the units will do, then the referee decides the order and how things will play out. Videogame turns were an inversion of a rule system that yet (almost) nobody has adapted to a videogame: actions are declared first,
then initiative is resolved but actions are supposed to be happening all at the same time; character don't take turns waiting for each other, that's just silly and makes no sense. But the videogame style has become so popular, that now nobody uses the original one. Back then, some initiative systems were simple (roll 1d6 for team initiative and a fixed order for different types of actions: ranged weapons > melee > movement > spells) but some were quite complex, like AD&D 2nd edition which, with individual initiative and all optional rules (weapon and spell speeds) could feel like BG with spell interruptions and two archers simultaneously killing one another. What it means is that you knew what your character wanted to do, but you were never 100% sure in what order things would happen.
For example, the things you said are problems with RTwP:
Your party will fire spells into your line, use AOEs incorrectly, waste healing using it too early or too late, they won't react to flanking or being flat-footed correctly etc.
Were all features of the original p&p D&D to simulate the uncertainty and chaos of combat. I recently watched a video by one of the original D&D creators (Tim Kask) and what you say about AOEs happened in one of the first playtesting sessions: the warriors declared they were going to charge into the room and the mage said he would cast a fireball, not realizing those things would happen in the same round. So, movement (which is faster) was resolved first, then the mage cast the fireball (a slower action resolved at the end of the round) when the players were already inside, and one of them died.
