Not discounting the rest of your lengthy post but this is something that may be the crux of our disagreement. What you describe above is not how favored foe works. It’s only +1d8 the first time you hit on each of your turns.
It is how it works. You can mark someone on every single hit. It is not an action so the only limit is your concentration (which you drop every time you activate it again) and the number of uses you have.
You never should try to get more than one attack out of a single use, that just nerfs it. If you try to use FF like a nerfed Hunter's Mark or Hex where it sits on one creature it is a lot worse and in that case I would agree with you. I use it (and most Rangers use it) similar to how Divine Smite was used with Paladins in 5E. Hit and activate it for that one attack and only that one attack and then drop concentration and activate a new use of it again on the next hit.
Yes if you houserule that you can only expend one use of the Favored Foe feature per turn then that changes it but that is not RAW.
Every time I hit it is a new use. So hitting 3 times in one turn uses up every single use of favored foe at level 5 and half of your daily uses at level 20. This is RAW.
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