The general idea looks very nice. I think I have some issues with some of where he's going with it, but given that he's just rambling off ideas, nothing that I'm going to worry about yet. (Mainly problems of elegance, and I think that might sort itself out when formally drafted up.)
Aramis, are you doing stuff on-line? I'd just have everyone announce their current numbers every time you get through with the last set of actions. Or you can keep a line of colored dice on your desk yourself.
I can't really see it getting in the way of narrative (at least, not more than any combat between more that two people would). Use the dice, and very simple combat mechanics, and it should flow quite naturally. Of course, I'm the type that has a hard time with combat without using at least half the advanced combat rules in GURPS, so I may not be the best person to talk about 'simple'....