I have some concerns about your proposal regarding magic. Although it is pretty obvious that HERO can handle several different magical frameworks and I would like to see them ranging from high to low powered systems and from freeform to Vancian system, this may create difficulties to play the game. I am kind of short of time and it may be a little hard to have to generate all the spells. Most of the people I play with need my assistance to generate their characters. I remmember that although I found that Fantasy Hero (Hero 4th version) was an exciting book, some players complained that there were very few ready to use spells. I know that a Grimoire is forthcomming, but I would appreciate if you could include more examples in Fantasy Hero to help novice players.
Other than that, I hope that your equipment list will cover the Renaiscence, including early gunpower weapons and rapiers, as I have a fantasy campaign in this technological advancement level.