So guys what do you think, would it actually be possible to finish Grimrock without taking advantage of the slow AI by "dancing" circles around enemies and attacking when while they are still trying to face you?

I admit the system was too tempting not to exploit, and I won all my fights by luring enemies into bigger areas

Perhaps. But it would take a lot of level grinding.

The "dancing" is part of what you need to do to beat enemies. I don't think it's an exploit.

I considered it tactical fighting, not exploiting.

Hypothetically, I suppose. It's part of the encounter design, however.

Well I consider Grimrock to be an old school game despite it's release date. And back in the day level/gold grinding was nothing out of the ordinary. So I hope that it should be possible to grind and then stand up to the enemies with the occasional tactical retreat, no?

Ehhh, well sometimes it's tactical I guess, but it was rather silly how you can defeat 6 or more undead knights simply by luring them into a square room with something like a pillar in the center, then you just let them chase you round it and attack them from the side before they turn. I mean if the AI was coded so that the knights would "split up" if you tried this tactic, then they could surround your party and destroy you immediately. Instead they follow you round in circles and let you whack them side-on until they die.