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.