I can see where you are coming from and I agree with what you are saying.
His past loans he was being played as a winger, if I’m mot mistaken he played as a winger for the youth team a couple of times as well, so he won’t be in an unfamiliar position if we pushed him wide.
I don’t know exactly the role that Isco plays but to me he seems like he drives the team, keeps things ticking and always has the chance to drive forward with the ball (something that Andreas is very good at), putting Andreas in that position will help our attack and can also help us have a grip of the game. We can control the game better.
The biggest problem with the team is that we lose possession cheaply, our counter attacks are always ruined by a misplace pass or a bad first touch. Andreas solves that.
Having Adreas in the team solves 3 of the team’s biggest weaknesses (losing position cheaply, losing the middlefield battles and poor crosses into the box).
Mind you Real could have played a pure winger (Bale) but always opted for Isco, I think we should do the same.