Personnally I think its the size of FRED that makes it so intimidating, 1st Ed Champions is basically still in there, its just that now Champions 2, 3, Espionage, FH, DI, JI are also tucked in plus you have years of modifications. But if you boil it down to the basics (OCV, DCV, 11-, basic powers, Adv and Lims etc) its still pretty simple but the addition of all the extras makes one feel the need to use all of it. If you are starting out with new players I'd suggest you keep the powers fairly simple and then add in more as skill increases or character concept requires. I've been playing HERO since the beginning and I regularly ask questions I could of looked up but forgot it was dealt with in the book.
If you look at gaming since the 1970's the rules light vs rules heavy and cinematic vs realistic has waxed and waned over the years, I remember when I thought D&D was simple, now I'm lost going through the d20 rules. Than there were those great nearly unplayable games like Aftermath and Space Opera with rules apparantly written for maximum complexity and minimum payoff (although I'll admit that Aftermath was a favorite of mine for some time) and the grandmaster of complex Phoenix Command (although the complexity payed off if you had the patience). I've been buying a number of old RPG's on ebay recently and its been fun sorting through the rules and watching how the trends came and went and occasionally finding some little bit of brilliance hidden away that somehow went unnoticed before.
There were frogs there all right, thousands of them. Their voices beat the night, they boomed and barked and croaked and rattled. They sang to the stars, to the waning moon, to the waving grasses. They bellowed love songs and challenges.
John Steinbeck, Cannery Row
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