It makes perfect sense.

I use WE to identify the target, but I wait untill the ships comes close enough that even I can recognize it. It seems very unrealistical to ask WE to identify that small speck on the horizont.
I do use manual targeting, and only ask WE to identify because I'm to lazy to browse the Recognition manual myself.
Regarding the question about the periscope lock, I hardly ever use it, but I guess it is affected by the distance and sea state.