Not quite. I don't really use it that much, but it's a useful way to make enemies come to you and not spend your valuable AP's moving to the opponent.
If you're allowed to move wherever you want in the turn queue it would just be overpowered.
Sorry, man, but there are several P&P systems (WHWRPG, D&D, to name a few), and lots of CRPGs inspired by them, that contradict your statement. Being able to move freely (only backward, of course, not forward) in the initiative queue has never been an overpowered option. It's just the kind of flexibility you want in a game with personal initiative. Two of the best tactical games ever made (XCOM and Jagged Alliance) have team initiative (meaning you can move your men in any order you want) and also interrupts: overpowered? Not at all. And how does it work in Knights of Chalice and the Temple of Elemental Evil? Exactly like in D&D: Personal Initiative + fully functional delayed turns + delayed actions. Are they unbalanced games? Not really...They are the best fantasy RPGs out there when it comes to tactical complexity (at least on pc).
In a tactical combat system you want make your characters cooperate in smart ways. Personal initiative (without a fully functional delay system) hinders this kind of complexity, simply because prevents you from moving your characters as you like. Larians know that, and introduced delayed actions to fix this issue. Point is, so far they've given us only the choice between a fixed initiative order and a disadvantageous initiative order. Not really a choice in my book.
