Is initiative bugged? I just got my PC sorted, started a new game, rolled a 20 DEX elf while using the composite longbow - and I'm always the last prick to the dance floor when battle begins...
Can't be right?.
To my knowledge it works as designed.
First, you can look at initiative rolls in the log and examine the results for yourself.
Second 20DEX means +5 modifier which is applied to initiative rolls. That's a nice bonus but doesn't guarantee the initiative by itself even against an enemy without any bonuses. Add to that the fact that some enemies might have modifiers to initiative themselves.
If you really want to be somewhat reliably winning initiative you have to stack more +initiative than just plain +5 from DEX. Even more DEX, improved initiative feat, wizards can take a familiar with initiative (hare?), etc... Might not be worth in this game, you can still move even when you lost the initiative and it's not pnp so there is always reload if losing the initiative caused you problems.
At least that's my take on it, maybe others think differently.