Re: Was Fantasy Hero 2nd ed self-contained? How was it?
I think you underestimate how much the standalone book would cost to produce, and overestimate how many people might buy it. Even if there's no original material, it still needs to be edited, laid out, and printed. You're also aiming it at people who wouldn't buy the basic rules separately, which I suspect is a very small group. Conversely, a bundle is just another entry at the Hero Games store.
Mind you, I think the Hero System needs a turnkey fantasy setting. It just doesn't belong in the same book as the basic rules.