One issue is that this will still require people to behave strategically, since the auction is a complex game when you take into account everyone's information.

In theory, continuous trading should be the simplest game, and let people focus on their individual information and liquidity needs. In practice it certainly induces strategic behavior, but it might still be the simplest system.

The real problem in my opinion is the active human trading that drives these markets. The only reason there is so much is that people irrationally invest with actively traded funds. In fact if people were perfectly rational there would probably be too little price discovery, as people world but market portfolios and any other trade would stand out as information based. But in practice we are way on the other side of the spectrum, with way more active trading than is socially optimal.