I went back and reread the original post and you're correct, I did misunderstand. The concept as originally stated and explained by you goes well with the idea of further breaking down the powers into more generic building blocks. This would probably reduce the number of rules, but would require more explanation and examples for people to understand how to build what they wanted, which would be covered in the genre books. Thanks for the clarification.
This is the big problem with this issue. It's kind of like programming in BASIC versus assembly language. BASIC is easy, but limits your flexibility if you try to get creative with it because its predefined components do things one certain way (though modern extensions to BASIC have tried to correct this), whereas assembly language has no predefined components and is very flexible, but requires a lot more effort than BASIC to accomplish a given task.
AD&D is the BASIC of RPGs, and I'm not aware of a game that resembles assembly language, but I'd call HERO a C/C++ style of game, which isn't a bad thing.
There really isn't a "right" answer here; it all depends on what you want from the system. I imagine Steve pondered this point a lot while writing FREd.