It may be flawed to you, but, in my opinion, it's an improvement. It's far more flexible in terms of how I can arrange my stereo presets for the most convenient switching between the stations I listen to the most. I can assign presets to banks based on people who ride in my car and places where I drive.
Here's my other issue with this radio, reception is horrible...my 1975 Toyota FJ40 Land Cruiser got better reception...Its constantly drifting in and out, in areas of town it shouldn't...I've never had a radio in any car this bad. I'm sure my rant will produce more comments from you guys that think this is the best system ever, if it works for you...I'm happy for you, just relaying my experience.
The flaw isn't the way presets are organized. That's definitely an improvement (in my eyes at least). The fault is what happens after you press the MODE button. The system is not smart enough to switch to the correct preset bank of the currently playing station.