Yes, and every Captain out there puts the minimum "closest point of approach" for any contact that they're willing to accept into their standing orders, precise

Yes, and every Captain out there puts the minimum "closest point of approach" for any contact that they're willing to accept into their standing orders, precisely so that they will be woken up by the watch team with enough time to make it to the bridge and assess the situation. But this still relies on the watch team detecting the contact and realizing that it will pass near to the ship, and so again the ship's captain is back to relying on his or her watch team to at least get to that minimal level of competence -- because if they can't rely on the officers on watch to be able to wake them up properly, we're back to captains who can never sleep.