As a worldbuilding/fiction device, it's a hell of a lot better - genuine-looking limitations are always more convincing than "completely fantastical bullshit that just can't do any damn thing that you'd expect, for increasingly suspicious reasons", or that keeps switching capabilities after what the story/case needs. They're major alarm bells for not only being made up, but poorly.

It isn't the shtick for the major monotheistic religions, though. That wouldn't be very omnipotent or omniscient.

The “toddler god” idea has a flaw; he’d have tantrums.

Stupidity does not square with omniscience and omnipotence, though, unless one desperately needs it to. It would explain a hell of a lot, but you will notice how very little of the scripture goes "god, this god dude is such a stupe, but we're just rolling with it for reasons"

Besides, Hanlon's razor gets sorta short circuited by Occam's, which would seem to take a dim view of an entire bible's worth of waffling to explain suffering, war, famine, kids and good people dying horrifically from cancer, natural disasters etc etc etc