ExploderWizard
Hero
In this arrangement is A closer to B or C:
AXXXXXXXB
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By RAW 4e A is equally distant to B and C.
A quick glance at this diagram by someone who had no experience with gaming would logically produce an answer stating that B was closer to A than C.
The true beauty of 1-1-1 is that it requires NO explanation. None.
Try this: take a person that's never played any RPG before. Put their mini on the grid. Tell them the can move 6 squares. See if they come up with 1-2-1-2 on their own.
Stated in those terms, you are 100% correct. Proposing all movement in terms of squares and providing no references as to what that square means in the "reality" of the gaming environment will have the effect of rendering the gameworld as a board, with well defined spaces.
I've recently done this with half a dozen players. Everyone has done 1-1-1. Compare to the many, many games I've seen where long time, experienced gamers have botched the 1-2-1-2 rules...
1-1-1 is just a superior rule.
PS
I wouldn't call 1-1-1 objectively superior or inferior. In "the world is a game board and I move like so" department the rule is simple and superior.
In a game that is more focused upon positioning and spacial relationships taken from the game world represented by minis on the table the rule is inferior by far.