Just pretend it never happened? I just don't think it will work and feels forced.

Why can't I just say that the next act is a new encounter and re-roll initiative when the next encounter (act) begins? What's the point of the Rally Step if it's between acts?

Don't you drop out of encounter mode anyways or are they implying that you stay in encounter mode whenever you are exploring a dungeon or whatever?

I like the structure and episodes but I just don't see the need for the Rally step? What would I need to change to get rid of it?

thanks

You could try rethinking what the rally step means. It's not something that happens between fights, it's a step between one stage of a fight and the next. It's the momentary pause in the chaos of battle when the ogre breaks down the door and charges in. It's the chance for the players to gather their courage as their dwarven allies flank the enemy. It's the moment of dramatic tension when the cultist leader threatens to kill the innocent hostage if the PCs don't surrender.

Basically, the rally step is a tool to help you make battles have more narrative structure.

It is also there to give the PCs a bit of a bonus in the whole scheme of things.

Note that many of the actions they perform are of direct benefit to them. Removing it just makes things a touch more difficult for you Pcs too

I've found that the more I use the Rally Step the more I like it. I don't try to "force" it in though. In other games I've always attempted to brief narrative pauses; such as the arch-villian saying a few menacing words and flaunting his obvious superiority before the grand showdown begins (like in every good action movie). However in the past the PC's just rush it, or complain about how they woundn't just stand there and let him talk. Now I've got the perfect tool for the job. The stroy-driven players in my group enjoy a moment to "take in the scenery" and my more action-oriented players recieve a little mechanical incentive for letting the story play out.

Over all I wouldn't the Ralley Step, but don't try to force it. Just wait and let it come naturally. Let some bad guys retreat and regroup, if the PC's give chase don't allow them a rally, if they decide to take a minute let them rally. It might help to think of it as a group action "we're all going to take a minute to catch our breath".

It gives you another tool to parse the difficulty of an encounter. Rather than just swamp them with a dozen opponents, which may be a very difficult encounter, you can split it up into two waves with a Rally Step giving the players an opportunity to recover Fatigue/Stress, attempt healing, etc. before the reinforcements arrive. This approach will the encounter difficulty. Note that you could also reduce the total number of opponents, treat the majority of them as Henchmen, or use weaker/less threatening opponents as well. The Rally Step is just another tool in your GM bag. Every encounter shouldn't have a Rally Step, just as every encounter shouldn't have Henchmen. But by mixing it up and using different combinations of the tools at your disposal, you can give your players a variety of challenges without the need for a more extensive Creature Catalog and will get more mileage out of the existing Bestiary.