It's a bad laptop design. An iPad or Android phone/tablet can fast charge with a good supply or slow charge with a cheap one. The laptop should do the same, accept whatever the supply can deliver.
Also, what's the problem with the user using 5 individual small USB chargers versus a big one? The efficiency of all USB chargers is about the same, so it doesn't matter how you split them up. In fact, a small USB charger working at maximum output is more efficient than a large one working at 20% load.
You are correct that ideally the USB-PD supply should monitor the actual usage and route power accordingly, but I'm not sure it's such a problem in practice.
:) This thread started with iamchp asking about "single multi-port USB-C PD converters."
The laptop should [...] accept whatever the supply can deliver.
And both sides should renegotiate when available/needed power changes. If a laptop could say "I could use 240W but I can deal with 18W," a supply said "I can give you only 18W, but I'll let you know when I can give you 240W," and the laptop later said "you know what? Now I really need only 36W," then I think USB-PD would be good. My experience is the negotiation happens once, possibly days earlier, when the device is first plugged in.
(By the way, it's not always the right product decision to include boosting circuitry from lower-voltage supplies. While a MacBook will charge from a 5-volt supply, you'll be sad when it dies during a critical work presentation even though it's charging, because the presentation needed more than 15 watts. It's a defensible product decision to require a minimum wattage, and thus effectively a minimum voltage, or refuse to charge.)
As for the refusing to charge, my ThinkPad on Windows will alert me when the dock or power source isn't putting out enough power for it to maintain the current power usage trend.
A good example of the problem is a hypothetical USB-PD power strip that has 5 ports. The Amazon listing says it can deliver 120 watts. A person buys it, thinking they can use it for their 100-watt laptop and four other small things that each need barely 5 watts, 1 x 100 + 4 x 5 = 120, so the math adds up. They're still working from home post-pandemic, so they leave their laptop plugged in all the time on their desk. The laptop charges for maybe 45 minutes each day, but it still tells the power supply that it needs 20V x 5A = 100W constantly, and each of the small devices asks for the minimum of 5V x 3A = 15W.
For actual USB-PD supplies I've bought in this approximate situation, the laptop won't charge because the supply can't promise 100W. You hook up your Kill-A-Watt and find that the supply is actually drawing only 20 watts. The power supply is keeping all its promises -- 15W to each of four small devices, meaning it can't agree to supply 100W to the fifth device. So it instead says it can do maybe 12V x 3A for the laptop, which says forget about it and refuses to charge. Yeah, the laptop sucks for lying that it needs 100W 24/7, but what am I going to do? Get a new laptop? Or just put the USB-PD supply on a shelf and return to a regular old AC power strip with five individual USB transformers plugged into it? That's what I'll do, because that's what works.
In today's world, the "If" in your comment happens at the AC circuit-breaker level. In the USB-PD world, it would happen at the level of this little multi-port power supply. Your average consumer in a hurry doesn't want to be bothered by this kind of detail.