Okay...I'll try try and keep my suggestions slimmed down. Here's my 2 cents.
1. I hope you're prepped for some serious whining, but it's more realistic this way.
2. I don't see a major problem with this, except the forge stones. There will be much grief killing involved. The only real problem I have with it is I'm gonna wanna keep my stuff in storage for safe keeping and I already lost a scarlet forgie and pair of slippers when the chest got bugged for one of my chars.
3. I love it. There will be much throwing down over those benches. And not some little scrap...we're talkin bloodbaths
4. I don't have any problems as is, so do whatever.
5. While I've probably spent more time lost in the underdark than most, I do kind of enjoy the maze-ness (oh yeah, I just invented that word) of it all. But it's your server, so go with whatever.
6. This will completely screw up my system probably, but I'll adapt with as little whining as possible
7. This sounds reasonable.
8. Dang right we love quests.
10. Sounds good...no reason to have 2/3 of the server running around in one city. I've run into that before and it bogged me down bad.
My suggetestions (Which'll probably be shot down, but hey, a suggestion is a suggestion):
Being an Easter Egger, I love secrets. And while there are still a few things I haven't figured out/found yet, I could always go for more hidden stuff. Walking 10 minutes to find tiny hidden squares leading to areas leading to dragons, a deep woods barbecue gnome restaurant, crazy floating islands, whatever...hidden stuff rules. Of course these things may all be around and I just haven't found them yet.
And of course, I'd love to see some packets of peanuts in Lagnar's