Consider the set $\Bbb H:=\left\{\frac12 n\mid n\in \Bbb N\right\},$ where $\Bbb N$ is the usual set of natural numbers, so that $\Bbb H$ is a subset of the rational numbers that is closed under rational addition. Let $S:\Bbb H\to\Bbb H$ be given by $S(x):=x+1,$ where $+$ is the typical addition of rational numbers. This setup satisfies the following axioms:
- $0\in\Bbb H$
- $\forall x\in\Bbb H, S(x)\in\Bbb H$
- $\forall x\in\Bbb H,S(x)\neq 0$
- $\forall \langle x,y\rangle\in \Bbb H^2,S(x)=S(y)\implies x=y$
These are the Peano axioms except for the Induction Axiom. However, it does not satisfy the Induction axiom, as $\Bbb N$ is a proper subset which contains $0$ and is closed under the successor operation.
On the other hand, it satisfies the following axiom: $$\forall x\in\Bbb H,\exists y\in\Bbb H:\exists z\in\Bbb H:x=y+z.$$ This is true because $0+x=x$ for all $x\in\Bbb H,$ and (together with closure under addition) means that the axiom you're wanting to replace Induction with has been satisfied, so your replacement axiom won't do the job.
Added: In response to your edit, note that $\Bbb H$ also satisfies the following properties:
- $0+0=0$
- $\forall x\in\Bbb H,\forall y\in\Bbb H,S(x)+y=S(x+y)$
- $\forall x\in\Bbb H,\forall y\in\Bbb H,S(x+y)=x+S(y)$
Added: Since you're interested in Peano Axioms without induction, consider the following list of axioms regarding a set $\Bbb A,$ a function $S:\Bbb A\to\Bbb A,$ elements $\mathbf{0}\in\Bbb A$ and $\mathbf{1}\in\Bbb A$ such that $\mathbf{1}=S(\mathbf{0}),$ two operations $\oplus$ and $\odot$ on $\Bbb A,$ and a binary relation $\prec$ and the corresponding reflexive relation $\preceq.$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,(x\oplus y)\oplus z=x\oplus (y\oplus z)$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\oplus y=y\oplus x$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,(x\odot y)\odot z=x\odot (y\odot z)$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\odot y=y\odot x$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,x\odot (y\oplus z)=(x\odot y)\oplus (x\odot z)$
- $\forall x\in\Bbb A,x\oplus \mathbf{0}=x$
- $\forall x\in\Bbb A,x\odot \mathbf{0}=\mathbf{0}$
- $\forall x\in\Bbb A,x\odot \mathbf{1}=x$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,x\prec y\wedge y\prec z\implies y\prec z$
- $\forall x\in\Bbb A,\neg[x\prec x]$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\prec y\vee x=y\vee y\prec x$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,x\prec y\implies x\oplus z\prec y\oplus z$
- $\forall\langle x,y,z\rangle\in\Bbb A^3,\mathbf{0}\prec z\wedge x\prec y\implies x\odot z\prec y\odot z$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\prec y\implies\exists z\in\Bbb A:x\oplus z=y$
- $\mathbf{0}\prec\mathbf{1}\wedge\forall x\in\Bbb A,\mathbf{0}\prec x\implies \mathbf{1}\preceq x$
- $\forall x\in\Bbb A,\mathbf{0}\preceq x$
- $\forall x\in\Bbb A,\neg\bigl[S(x)=\mathbf{0}\bigr]$
- $\forall\langle x,y\rangle\in\Bbb A^2,S(x)=S(y)\implies x=y$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\oplus S(y)=S(x\oplus y)$
- $\forall\langle x,y\rangle\in\Bbb A^2,x\odot S(y)=(x\odot y)\oplus x$
The assumptions that $\mathbf{0}\in\Bbb A$ and that $S:\Bbb A\to\Bbb A,$ along with the usual axioms of equality, the axiom of induction that you mentioned, and axioms 17 and 18 above, together comprise Peano's original (second-order) axiomatization of Peano Arithmetic, or $\mathsf{PA}.$ From those, the operation of $\oplus$ can be defined by 6 and 19 with induction (which allows $\odot$ to be defined by 7 and 20 with induction), and the relation $\prec$ (and then $\preceq$) can also be defined along the lines of 14.
On the other hand, if we add the single axiom $6$ to Peano's original axioms, then even without induction (which is needed in order to make $\oplus$ a total operation instead of a partial operation on $\Bbb A$), the statement $$\forall x,\Bigl(x\in\Bbb A\iff\exists\langle y,z\rangle\in\Bbb A^2:x=y\oplus z\Bigr)\tag{$\heartsuit$}$$ can be proved directly.
Now, consider the following:
Example:
- Let $\Bbb A$ be the set whose elements are the polynomials in a single indeterminate (say $t$) with all coefficients in the integers, such that either every coefficient is $0$ or else the leading coefficient is positive. So, for example, $1t^5+-7$ is an element, but $-3t^3+10$ is not.
- Let $\mathbf{0}$ be the polynomial with every coefficient equal to $0.$
- Let $\mathbf{1}$ be the polynomial whose lowest degree coefficient is $1$ and the rest equal to $0.$
- Let $\oplus $ be the usual polynomial addition operation.
- Let the function $S$ be given by $S(x):=x\oplus \mathbf{1}.$
- Let $\odot$ be the usual polynomial multiplication operation.
- Let $\ominus$ be the usual polynomial subtraction operation.
- Let $\preceq$ be defined by $x\preceq y$ if $y\ominus x\in\Bbb A.$
- Let $\prec$ be defined by $x\prec y$ if $x\neq y$ and $x\preceq y.$
One can prove that the following are equivalent for any two polynomials $x,y\in\Bbb A:$
- $x\prec y.$
- $x\neq y,$ and on the highest degree term where the coefficients of $x$ and $y$ differ, the coefficient of $x$ is less than that of $y.$
From there, one can prove that $\Bbb A$ satisfies axioms $1$ through $20,$ as well as $(\heartsuit),$ and even the statement $$\forall x\in\Bbb A,x\neq \mathbf{0}\implies\exists\langle y,z\rangle\in\Bbb A^2:x=S(y\oplus z).$$ However, consider the set of polynomials whose coefficients are $0$ for all but (possibly) the lowest degree term, which is a proper submodel of $\Bbb A$ corresponding exactly to the usual natural numbers, and so induction fails.