I would like something along these lines since, as stated above, people don't just move in four main directions. While diagonal movement still wouldn't cover all the directions a real person could move it, it would make things a little bit more realistic.
There would still be a grid. Movement would be similar to Mystery Dungeon.
On A: Difficult and awkward? Really? I can think of MANY grid-based games (Heck, like I mentioned above: MYSTERY DUNGEON SERIES) that allow diagonal movement and it is in no way difficult. You'd have to have some really tiny hands for it to be difficult. No one's going to force you to use the diagonal movement.
On B: Once again, MYSTERY DUNGEON. It would not break the flow of the animation if done properly. And I'm pretty sure the steps are counted by the grid squares stepped on or something similar, so it wouldn't really effect that. Plus the step counter was ONLY in DPPt, and because of the pokétech. Though I'm sure if they choose to bring it back, it would not be difficult to alter how it calculates the steps taking into account diagonal movements how they choose.
I prefer the grid
There would still be a grid. Movement would be similar to Mystery Dungeon.
And diagonal movement would not work on a grid system because A) as I already pointed out, it's difficult and uncomfortable to press two directions on the D Pad, and B) each diagonal "step" would be significantly larger than each horizontal or vertical one, which would make the animation look incredibly awkward, and could also mess up some of the functions based on step-counting by allowing players to move one "step" in what would normally take two (I'm not sure how all of them are calculated, so I could be wrong - but it would certainly make things more complicated that Game Freak may just want to leave simple).
On A: Difficult and awkward? Really? I can think of MANY grid-based games (Heck, like I mentioned above: MYSTERY DUNGEON SERIES) that allow diagonal movement and it is in no way difficult. You'd have to have some really tiny hands for it to be difficult. No one's going to force you to use the diagonal movement.
On B: Once again, MYSTERY DUNGEON. It would not break the flow of the animation if done properly. And I'm pretty sure the steps are counted by the grid squares stepped on or something similar, so it wouldn't really effect that. Plus the step counter was ONLY in DPPt, and because of the pokétech. Though I'm sure if they choose to bring it back, it would not be difficult to alter how it calculates the steps taking into account diagonal movements how they choose.