I'm A Banana
Potassium-Rich
About the initiative system, why don't you simply have it so that the person with the highest initiative acts and have initiative penalties for each action (like you have but without the inclusion of rounds) and then make characters wait if they have negative initiative. It might work if wait let X other characters go before your initiative was counted.
Not sure I can wrap my head around what you're saying. Not to have rounds, just to have whoever at the moment has the highest Init go next? Could work, but rounds are useful for more than tracking Init, too. Things like durations of spells and effects.
Though to be honest, the real wall to that development is more how hard it is to explain the new Initiative system by itself.

