For the most part I looove the abstract movement concept where everyone's a distance from everyone else. The only downside is that when certain characters/npcs are specific distances from each other and aren't the 'focal center' of the encounter.
For example, you want to track how far the elf in the tree is from the overturned wagon in the road AND how far he is from the approaching beastmen, coming up the road opposite the wagon. That's fine you have markers indicating the distance to the wagon for the elf and wagon to beastmen. Count them up and it's how far the beastmen are from the elf. Simple.
What about when you have multiple characters within close range of one another, but each grouping is spaced out in such a way that group A is perhaps close to group B, but neither is the same distance to C (oddball, but it could happen).
I happen to have a bunch of these from a custom project I worked on a while ago and I think they'll be finding new uses during our gaming sessions.
www.litkoaero.com/page/LAI/PROD/TS/TS043-RED