Interesting, for me they have worked as the grid shows.
One thing that really caught me though and I don't think it is intentional, but I like it a lot...
If you put say a couple chars of 4 on the furthest row back, a lot of times when combat starts, only the front one's are locked in combat. You can still move the two in the back separate/realtime and tweak your positioning. Most of the time this will cost those back rowers to be starting the first round last, but after that round, their Init will kick in accordingly. I found this pretty cool overall.
I do like the grid layout to combat, so all my guys aren't easy AEO pickings at the start.