I dont know of any manufacturer that has auto iso that is really optimal yet
... which is very amazing, since iso is only the 3rd thing to calculate with apart from shutter speed & aperture. Flash may complicate things, but really, it can't be that hard to get these basic features right? Some crippling might be due to marketing concerns, but other things like ec on m really sounds like photog's input doesn't reach the devs.
Auto Iso works for me on on the 1D4 - you get faux M with auto iso and ec when you know the settings
yeah thats as good as it gets for canon, even the fuji x10 is better in auto iso implementation now to just get them to enable the EC dial in M mode...
but while your method works its more of a work around the problem than a slick implementation of how a simple easy to use auto iso in M mode with EC should work