I think the only way a space battle could work was if it played out entirely from the bridge, sort of like a Star Trek episode, rather than a flight sim minigame or an entirely external view of the ship similar to controlling the Mako. A space battle mini game would probably soak up too many development resources to justify for a game that isn't a flight sim.
A one-off story mission however where the main character is faced with tough command decisions, and the battle plays out primarily from the bridge, except for maybe a cutscene conclusion? Yes, please. Why not ape some of the shows that inspired the game?
This seems like the most "Mass Effect-y" way to do it (albeit actually being more of a "Star Trek-y" way.)
Given some of the other game mechanics, the scene could be impacted by previous decisions, relationships with existing crewmembers, or even the results of past missions impacting the firepower or defenses as the scene plays out.
While acknowledging the attendant controversies that ultimately sprang from the scene, the opening sequence of Mass Effect 2 was one of the most breathtakingly exciting sequences of the series, and it was essentially a long interactive cut scene. I think that approach, when handled well, is something BioWare has really excelled at doing with Mass Effect.