I am not fond of the standard Text on Path effects within CorelDRAW or Adobe Illustrator for the reasons you describe. The results often end up looking pretty wacky because the effect is only rotating the letters
and often not doing the best job of it either. Any letters that are wide at all look horrible applied in a Text on Path effect.
I tend to get the best results with the standard Text on Path effect by using really condensed or compressed typefaces and giving the letters pretty wide spacing. The letter rotation tends to look a bit more natural.
The envelope effect can do a little better, but it's really difficult to get results that look proper.
One trick I've used over in Adobe Illustrator is turning a string of letters into an Art Brush and applying that to a path. That will actually get the horizontal features of the letters to follow the bends of a curve. You'll still get some distortion, but it will be far more natural looking than anything gained from manually tinkering with an envelope filter. Determining the target path's length and making the art brush letters match it will reduce distortion further. I attached a couple examples I made using that method. One was for an actual
sign project and the other (using imagery from "Pulp Fiction") was just a bit of fun (I had to crudely "edit" the graphic for this forum).