I use a metal dry erase board with the initiative count on it. The PC's have magnetic name tags and I use dry erase for the monsters. The board is near me, and everyone at the table can see it.
This system is extremely easy and pretty cheap.
Actually, there's another good point - let the players keep track of it. It's something that's easy to offload and it gets at least the player more engaged.I also play with a GM who uses the Combat Pad, but he moved to a larger magnetic whiteboard, which he has one of the players maintain. That also seems to work very well.
I use a metal dry erase board with the initiative count on it.
The only problem I have with the Paizo one is when players have similiar initiatives it's hard to keep them in the same spot without running into the lower/higher numbers since not every slot is numbered.
I've tried white boards, sheets of paper, index cards, and the paizo tracker.
The best system I've found uses 3x5 cards cut in half the long way and draped over a DM screen with the character name at the bottom on both sides.
Here are some pics:
IMG_0146.JPG on Flickr - Photo Sharing!
IMG_0144.JPG on Flickr - Photo Sharing!
Use a card to point your way from highest to lowest.
You can also cut more cards shorter than the init cards and make them status effect cards:
Init and Status cards on Flickr - Photo Sharing!
This system helps you track init, helps your players see when they're up or have their neighbor yell at them, and lets you track status effects.
It's the best and the cheapest system I've seen for init and I love it.