Well, reading this thread the number of things that don't work has multiplioed

Some good points here...
For me, the main problems are:
- Hit Points. They are mostly evasion/fatigue/luck in my game, but it still doesn't quite work. Player: "I hit him... *roll, calculate*... for 12 damage"
Player: "He evades your petite blow with a smirk"
Player: "OK, I guess I DIDN'T hit him after all..."
- No Reactivity. Two combatants just keep stnading at their postiions, trading blows (and even the ones that miss don't harm the soroundings or armor or anything). The rouge saves from the fireball, but is still standing at the bare center of the room. And so on.
- Too Many Rules. There are just too many rules to remember them. And often the rules don't make sense in the particular circumstances. I want a simpler game, with more room for DM fudging.
Now for some more concrete comments...
Felon said:
On this count, I like the GURPS method. You have one second. Act. OK, you drew a weapon. Next guy. OK, you cast a spell. Next. OK, you moved up to your foe. Next....
I very much liked the "Counting Initiative" model. Everyone declares what he does at count zero, and the DM says how long it would take them (in, say, seconds). The DM then proceeds to count the seconds out loud - when the count gets to a character's action, he gets to do it, then says what he does next and so on. If a character decides to change plans, he must say so when he does and the DM sets the time it would take for the new action. In this way, all the players tend to listen all the time as they may decide to change plans, and doing so earlier means they will finish it earlier.
This sounds more complicated than it is. In rules, it would be something like:
- Every player must state what his character does - from "just standing and looking around" to "charging through the mob to get to the BBEG while fighting defensively". Roll 1d10+dex modifier+circumstance modifier (set by the DM) and add it to the current Count; when the Count reaches this amount, your action is resolved.
- You can restate your actions at any Count.
- The DM Counts, starting from zero. You can stop him to declare an action at any time. If you miss your Count, you may act later - the DM shouldn't remember your Count for you.
- When between actions, your character is where and doing whatever the DM decides; other character may intercept it or interfere with its actions.
Something like that.