Re: Modern Fantasy
The potential of such a setting means it should probably be developed as its own worldbook, like Terran Empire or D20's own Urban Arcana upcoming book. Nevertheless, this raises a good point.
The last FH didn't focus on modern or urban fantasy, but it did at least list these as subgenres along with horror, epic fantasy, swords & sorcery, etc. Figuring out what works with a genre usually means defining a genre. But just as modern fantasy may be easily confused with supers or sci-fi, it may be easily confused with what is conventionally regarded as 'fantasy'.
To wit, if modern media ranging from the White Wolf games to Buffy the Vampire Slayer present a modern setting with fantasy tropes like demons, magic, and nasty swords, then what distinguishes 'fantasy' as its own genre besides medieval costume drama?