My problem with waypoints is that if you miss a waypoint and then turn on AI, the AI tries to go back to it, rather than going on to the next waypoint or to the nearest waypoint.
Going back to the last known location might be realistic if you're flying over unfamiliar terrain or have limited landmarks and the waypoints are widely separated, but makes no sense if the waypoints have been set up to make planes orbit over a particular location, or if the planes are supposed to rendezvous with some other unit.
In a more perfect world, the FMB would include the following options:
Attack -> Attack type: high level bomb, dive bomb, strafe/rockets, torpedo/skip bomb/kamikaze.
Loiter -> Pattern: Circle, Racetrack, Expanding circle/spiral, square, rectangle, expanding square, expanding rectangle, random with X radius of waypoint. Speed change: +/- X mph/kph. Altitude change: +/- X m/feet.
Missed Waypoint Behavior: Back to last waypoint, go to next waypoint, go to nearest waypoint.
Dogfight behavior: Avoid contact (i.e., keep at least X distance from nearest enemy while still trying to get to next waypoint), Defensive circle (AKA Lufberry Circle), Escort/air cover (i.e., don't go beyond X distance from Y unit/location - close vs. loose escort set by distance), Ignore (i.e., don't dogfight or maneuver at all - very realistic for level bombers at IP point), Cautious (i.e., dogfight if attacked but don't pursue if enemy breaks off), Aggressive (i.e., normal dogfight behavior), Scatter (i.e., similar to what happens when bomber formations are badly shaken up, but logical initial behavior for unarmed formations), Flee/Retreat (i.e., avoid contact with enemy and got to another waypoint if enemy sighted), Scatter & Flee (combines the two options above - formation scatters, individual planes try to make it to another waypoint individually).
Escort Behavior (Can be assigned with other commands, no other flights need be present to get search patterns along a particular path): straight flight, weave (i.e., a sinusoidal path), zig-zag (i.e., 45 degree left and right turns every X meters), racetrack (i.e., oval loops - like current fighter escort behavior), orbit (i.e., circular loops), random.
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