Well, overall, we liked the initiative system but it did make for a longer game. Also, we found it odd that you could have a unit react, then take an action - because we're used to units only reacting in the opponent's turn.
Integrated actions puts a great tactical skew on the game - one that is quite positive. I hope Non-Com and I do it again!
We also made Elites target number 5+. He played his paratroopers against my Waffen SS, so we both had elites. I kept a track of the numbers and - surprise - it was dead on average. There were 1/3 fewer hits.
The casualties inflicted on the paratroopers, however, were incredible; I think they lost nearly 30 men, and all their armor. Most casualties being attributed to mortars and Wirbelwind fire - so the increased target number and elite cover bonus was not an issue there. Direct fire did occur, with some incredible accurate fire from my SS scoring killing shots. Just blind luck really.
On the flip side, SS losses were very very low - miracle seeing as how he outnumbered me 2:1. I lost two men and my Wirbelwind, and the Panther suffered a single hit.
So, the increase appears to be balanced but I want to see it again since there were some incredibly lucky shots on my part and some abysmal dice rolling on Non-Com's part.