That’s really only true if you have overloading though! Without overloading there are no disjunction choices to attempt, and if you also have principal typing it makes the problem of figuring out diagnostics easier, because each expression has a unique most general type in isolation (so your old CSDiag design would actually work in such a language ;-) )
But perhaps a language where you have to rely on generics for everything instead of just overloading a function to take either an Int or a String is a bridge too far for mainstream programmers.
It feels like a much better design point overall.
My original reply was just to point out that constraint solving, in the abstract, can be a very effective and elegant approach to these problems. There’s always a tradeoff, and it all depends on the combination of other features that go along with it. For example, without bidirectional inference, certain patterns involving closures become more awkward to express. You can have that, without overloading, and it doesn’t lead to intractability.