muttly13: Its not your imagination and has been a concern from day 1. Improvements have come over time with updates. And while I understand and have seen examples of it first hand, I do feel people make it a bigger deal than it actually is. Yes, it does not always pick the ideal dwarf to craft your item. Yes, it sometimes sends a dwarf from half way across the world to pick up a leaf some other guy is standing right next to. So on and so forth, but it rarely impacts the overall game play in some significant fashion.
And just as a note which you may already know... If things are wonky, just click the "stay home" button on an off. It resets the jobs. And if there are super wonky, just leave the game and come back in. Usually this "fixes" most pathing issues.
I agree that these details are part of the simulation. The dwarves are not perfectly coordinated.
The thing I do not like is the dwarves' individual path finding. They are incredible incompetent at using rail and elevator (e.g., they walk one tile above a railway track ignoring multiple access points).