I don't think there's anything special about init that requires mode 0500. if a regular user wants to run it, let them. i mean, if running init would do something evil, i've got bad news. i can build my own...
also, the makefile contains (thankfully) ignored install flags. delete them too. Index: Makefile =================================================================== RCS file: /cvs/src/sbin/init/Makefile,v retrieving revision 1.8 diff -u -p -r1.8 Makefile --- Makefile 18 Mar 2015 19:55:52 -0000 1.8 +++ Makefile 19 Sep 2015 17:22:21 -0000 @@ -4,8 +4,6 @@ PROG= init MAN= init.8 DPADD= ${LIBUTIL} LDADD= -lutil -BINMODE=500 -INSTALLFLAGS=-fschg CFLAGS+=-DDEBUGSHELL -DSECURE -DLOGIN_CAP .include <bsd.prog.mk>