This is what you get when you take a abstract narrative game and stick a strict wargamy initiative system on top of it.
Holding actions is a good way to create more of a flow in combat, especially if both sides are holding. Now you've got a place to insert all sorts of things like threats, intimidation, even negotiations before combat starts up again. A more flexible initiative system reduces the action economy which also removes the pressure each player feels to make their turn the most combat effective one possible.