Meh, it's all to complicated for my tastes. Just as long as the initiative system allows for and encourages fairly realistic combat tactics, it's good enough for me. More options for reactions and simultaneity action is a good thing though, and we may well see those in 4e.
But still, you guys got me thinking, so here's an idea that might help smooth things out without having to reinvent the initiative wheel:
Continuous move actions: You still act on your turn, and you decide to move on your turn, but you need not spend all your available distance at once. For example, on your turn you cast a spell and take a move action. Your move action gives you 30ft (or 6 steps?) and you can decide to take all that and dash back into a safer area. Or you can move half that, and wait to use the rest of your movement, or just wait to use any of it. You can use the rest of your movement at any point until your next action, even if you delay.
For example, if an enemy fighter comes charging at you from a distance, and can only move as far as to your position and 10ft more then you can take 15ft and move back enough that he can't reach you. The fighter moves his maximum distance and stops just short of his target, and throws you a nasty look.
If the fighter were already close you wouldn't be able to avoid the attack, but you could still react defensively. Moving close to an ally could force the assailant to risk provoking an attack of opportunity, or forgo his action. Even if the ally were too far for that, if he had some movement available he could move to intercept, and force the fighter to either engage the ally or abandon his attack.
At most one character can take a square of movement against each of another characters, but doing a double move or running at x3 or x4 speed gives a similar advantage to who can outrun or catch up with who.
Of course it needs some tweaking of various fiddly bits of rules, but think it's workable. Feel free to poke this with a sharp stick though, I'm sure there's some horrible complications I'm overlooking.
And oh yes, this is free for anyone to yoink, if they like.
