dweekly parent
I'm not sure your complaint is actually that A* is bad, it's that the heuristic function is unfair (to the player, by giving the mob data they shouldn't have). A more sophisticated game could use a more interesting function like an estimate as to what direction the player's movement sound would be heard from.
Optimal pathfinding isn't always the right objective: for a good looking game agent reasonable pathfinding can often be enough, or even better.
For example, in a RTS making units follow a leader in formation can be more natural and less expensive than performing independent optimal pathfinding for all of them, while in environments with many obstacles staying away from walls (on a simplified graph of good positions) is usually more elegant than hugging corners (on a much more complex graph).