The manual bolt closure is far from useless in a military context and has two common real-world use cases today that I am aware of.
The increase in twist was because the rifle failed to stabilize bullets in some environments during testing, which is a pretty gross defect. And higher twist rates don't decrease lethality, it is actually the opposite for well-understood reasons. Current barrels are 1-in-9 IIRC.
The switch to ball powder happened after the initial usage of the M-16, which is correctly characterized as a logistical screwup, and they ended up redesigning the rifle so that it would perform correctly with the ball powder.