Today I implemented auto-aim, for gamepads/consoles, although it’ll be an option for mouse users too. It targets NPCs, or not, based on whether they hate you or not. It also targets torches and light sources, provided they’re dousable, and turned on, and you have water arrows selected.
It works by doing a line trace out from the camera, and then if there’s no hit, a sphere trace back looking for targets. More deets and debug vid through that link.