I wouldn't mind this. If they want the game to be a true sim they might give use different types of bags or side pockets. When we want to sort things out. We don't put tiny things at the bottom of a big bag. So, they could have side pouches that help separate inventory instead of having a magic sort button.
But if I'm being honest, there are going to be times where I just want the magic story button to move my stuff so I can just be done with it.