Well, this isn't a flaw, the game was meant to work this way.If you are surprised, the monsters get a free round of attacks... if you surprise the monsters then YOU get a free attack! What goes for the monsters goes for you, that's only fair, besides, what challenge is it if there is no risk of your party ever dying?
This is just another nice touch of this great classic, I remember my teenager stomach churching in 1981 when my party was getting surprised by the demons and starting to see my characters drop and I would QUICKLY HIT RESET !!! I often had to revert to a disk copy because I had lost my characters.
Also, Andrew and Robert thought the game out... if you characters died then you could search for them in the maze and pick them back up with another party... there was even a spell to help you out in this regard.
Snafaru
Let me repeat myself... Wizardry I for Apple II allowed spells to be cast in an ambush. Wizardry II for Apple II removed this feature. Wizardry I for every other platform removed this feature (pc, nes, etc.). Wizardry I for Apple II is the *only* version of Wizardry to allow it.Why did they remove it? Because it is overpowered and because it is contradictory. Spellcasting involves chanting magic words and waving your hands ad infinitum, actions which would blow any surprise.
You cite challenge as justification for this, but you contradict yourself immediately after.