I think the auto targeting for the controller is pretty decent, but it would be nice to have the option to turn it off, either entirely or for specific abilities.
The most vital function in my opinion would be the ability to turn it off for movement skills. Currently, you can’t control the direction of your leap/charge/etc. if there is a monster or breakable object in a ~180 degree arc of the direction your looking. It can be frustrating when you’re trying to move forward faster and your character 90 degrees to the right. And in the middle of a busy fight, an ability that should help you survive can actually get you killed.
It would also be cool to just have the ability to turn on/off auto-targeting on a skill-by-skill basis, so you can customize how your character plays. This is less important, and I don’t know how hard it would be to implement, but it’s an idea.