I really like this suggestion. I wouldn't even mind if no distance calculations were done, and units just picked random points to go to. But judging by spread move, even that might be too taxing
My alternate suggestion would be to add more formation-move templates, if possible, and maybe the ability to select a template based on a mouse gesture. I don't know the nuts and bolts of how formation move works, but it doesn't seem to suffer from the same performance issues as spread move.
Concave templates, for starters, would finally make formation move useful, right now all of them are worse than the default move order. Is that a viable substitute if the original suggestion is too costly?