If you had the option to set exposure on the fly, M-mode + auto-ISO would probably replace Av as my default setting, particularly in changing light conditions.
Not sure what you are getting at here?
As you are in M mode then iso, aperture and shutter speed are adjustable on the fly
Not if you are using auto-ISO (the topic of this thread); per the manual, only two of those parameters are adjustable if you are using auto-ISO. That is part of why people are complaining. If you could use auto-ISO in M mode
and adjust exposure, it would suit my shooting style much better. For me, its easier to think in terms of specifying {aperture, shutter speed, and exposure}, and let the computer (camera) figure out what ISO is needed to give me what I want.
As it is, if you are using auto-ISO, and you want to shoot in M-mode using the exposure that
you decide is correct (instead of the camera), you could either a) find something in the scene to use AE Lock on, then recompose (which is a pain, and not suitable for quick shooting), or b) change out of auto-ISO mode, which defeats the purpose of auto-ISO mode.
As I understand it from the manual, a custom setting C1 set to default in M-mode @ f/2, 1/200 second (aperture and shutter speed adjusted in between shots as needed), and using auto-ISO, would work for about 85% of the pictures I take indoors without flash. If I could add in exposure compensation, that would go up to about 95-100% of the no-flash indoor shots I take.
Similarly, C2 set to default in M-mode @ f/2.8, 1/2000 second (again, these would be adjusted based on conditions, I am just giving typical values) and using auto-ISO would work for about 60% of the sports shooting I do outdoors (a lower percentage because backlighting is more common outdoors). If I could add exposure compensation, that would be 95-100% again.
For landscapes and such, I don't care to use auto-ISO, because I can easily spare a few seconds to change ISO every shot, if needed. For other things, a slightly more intelligent auto-ISO would be amazing.