But that's basically exploiting the AI through kiting. In an RPG, you're not really in a position to ambush. To actually make this type of combat work, you'd have to totally rework the mechanics to be based primarily around stealth and alpha strikes.
You may be misreading what I wrote there but no, I wasn't thinking of kiting there. If you position what looks like good target upfront and the enemies make beeline for them, clustering together in the process and rendering themselves as good target to drop aoe spell or rain of arrows, this allows you to take out multiple enemies effectively and there's no "kiting" involved. Similarly, focusing your entire team on enemies one by one and cutting them down fast this way, instead of everyone getting tangled in their own little duels for prolonged lengths of time. Finally, the 'divide and conquer' tactics of trimming down groups with CC abilities to allow you to tackle them in more manageable numbers, maybe even to the point where the number advantage is actually on your side. All this can be done in RPGs (it was certainly possible in DA:O) without use of stealth. Yes, it can be called "alpha strikes" but that's perfectly reasonable combat tactic, and it works. I don't consider using your heavy-hitting abilities from the onset to be any kind of "exploit".
Now, as far as "kiting" goes, some sorts of this have plausible use in combat as well, imo. And not just in RPGs, but it's hardly uncommon in normal fighting to present part of your enemies with what looks like target they can tackle easily, only to have that target flee and lead its pursuers into what turns out to be a trap. Reducing you enemy's overall numbers in the process. And the mechanics which allow for this are already present, it's not something that requires total rework.
And heck, even the most blatant form of kiting is something that's regularly featured in all these 'heroic fight' scenes in movies and such, too -- when you watch them then it's not like one hero just stands there in the middle of 50 and lets all them stab him/her repeatedly like some giant, patient sponge. But instead they're moving and weaving all over the place, taking advantage of every cover, corner and other way to split their enemies and make them pointlessly flail about while some of them are being taken out.
I think that's unavoidable in any RPG with an epic story. If the PC and friends are mediocre, average and comparable to town guards, then it is downright insane that four of them survive for more than a few seconds against an ogre (much less a dragon).
I don't think it's insane at all. Yes, humans don't generally stand a chance against ogres, dragons or even bears or wolves when both sides fight unarmed. But that's why we use our ingenuity to even out the field -- why we clad ourselves in steel that protects us better than any hide protects our foes, why we bring weapons that can cut better than any claws. That's why, lacking the natural strength of much larger animals we again invent devices which can shoot projectiles with strength that can pierce not only hides of these animals, but even that steel we protect ourselves with. And if all that wasn't enough then in the fantasy settings we always can fall back on the convenient "the wizard did it".
Can the PC and friends be
somewhat better skilled, stronger and/or more determined than average town guard? Sure (especially when it comes to that last department) But that power difference doesn't need to be at absurd level where you can wipe out entire city worth of town guards with a simple sneeze. Personally, I'd probably draw a line somewhere around being able to fight on even terms at 1:2 odds. As I don't find it too unreasonable to expect 10-12 well equipped and well trained 'town guards' backed up with magic to take down an ogre or even a dragon,
if only they actually had guts to face one in the first place and then stand their ground, level-headed. Ogres and dragons are supposed to be powerful, but not invincible.