((Initiative can certainly affect the outcome of the battle. Faster characters (Or those with luckier rolls) can continually get a little 'heads up' on the situation, and do things that will bugger the enemies, if they are smart about it. However...really, after the first round, i don't see why a free-initiative system couldn't be used. Perhaps just keeping in mind the relative initiative, or perhaps the initiative modifiers of the characters would likely be MORE than enough to make it still fair! I'd say never forget about initiative entirely. Though using a slightly more freeform system...well...sounds nice! ^_^))