i like the idea of using mouse-movement instead of mousewheel, BUT holding left mousebutton is not a very good idea, as left click is also shooting.
we would need another key to be pressed instead of mosue button, or did i not understand you correctly?

Middle mouse button, and it´s like America's Army menu.

The left button should work to scroll/select only in menus. No problem with shooting.

then how would you shoot?

You shot AFTER select the option. Or you shoot and select at the same time?! lol
The button will have 2 funtions - Shoot, and when some menu appears, to make the mouse movement happen.

I think its easier, but the buttons can be customized.

Yes so use the middle mouse button for menu to let the fire free.

Not for me...I use middle mousebutton for grenades.

Considering that the actually selection is made by left click when in menu (Arma 2 preset), its no trouble. No need to 'let the fire free'

Scroll button activate menu as in ACE/CBA (context)

To Clarify:

1.Mouse scroll to make the menus appears;
2.Left Click to liberate mouse movement (up/down) over the menu
3.Release left click to select the option
4.Appearance like the game main menu

Buttons used don't matter (customizable), since the menu works properly

Nice idea but only (like you said) if the button are customization or maybe the middle mouse button, cause when we open the menu by mistake (happen a lot) and we get an enemy next to us, we are happy to keep our shooting capability.
But the idea is great and can permit a lot of various actions lot limited by a single menu only available with up/down mouse scroll.

Look at VTS Gesture mods :
I think it show exactly what kind of mouse click menu you want !
http://www.youtube.com/watch?v=bmVnQEb9yfE
It can exist 2 different form for this :
Like the VTS Gesture one who only handle mouse position (nice but not the best cause it is really fast but way too much leak of precision sometime)

And another like the inventory (or any mods that add new feature with clickable interface) that permit to use the cursor (way better cause it is intuitive, easy to use, fast and give a lot of precision).

Personally i prefer cursor rather than "mouse drag" but i think both are great, and all 3, vanilla with mouse wheel (who will never be delete i think) mouse drag and cursor must all be available with an options to choose the one we want !

I don't think the current menues are optimal, but imho the mousewheel is a way better solution than any "mouse-movement to select"

As on the mouse wheel you have a physical feedback on "steps" so you know you have to go "2 down" you just scroll your wheel 2 times.

Whilst doing the same with mouse-movement only would mean you have to put full attention on the menue to see where your current selection is to know when you have to stop. Also you would not be able to look around whilst doing so.

In general I believe the usability problem is more related to "actions appearing and disappearing whilst using the menu". Yes, scrollwheel is not the best, but it allowes way more customization than any "commo rose" as after a certain amount of items the CR won't be usable anymore as it is to cluttered with selections. It is obviously also a pain in the ass to have a ton of options in the Scroll-Menue but: It still works.

to borrow from a common idea, the "commo-rose"
http://spartanwarfighters.net/2top/3forum/images/PR/v90/PR_SL_commo_rose.png

I'd like not only mouse movements to be able to select, but also the ability to have WASD (and QEZC) select various menu entries as well.

Mass closing ancient tickets with no activity for > 12 months; assume fixed or too trivial.

If this issue is still relevant in current dev build, please re-post.