The most obvious things for me was that there is a strong incentive for me to try and cheat the system to get my whole party adjacent to each other in the initiative sequence.
After hearing him, I think I might be liking system quite a bit. There isn't inherent advantage to going at once, rather then enemy inbetween no? It just you have bigger flexibility in character interaction if they are adjacent to each other. It might be a very smart compromise between individual & team order.