Apparently I can't do math. Level 15 is 280 points?? Bugged me all day! Hah. Moving on...
It will be important to see what restricting city production will do for game balance. If new heroes are to come after that, then it is something to discuss. Otherwise throwing in what-ifs is counterproductive.
Archons are nice, but it's silly to examine them out of context. If your enemy has that much cash, you have cash to buy similar production. If you don't then the unit abilities are not your real problem. Buy Pegasi anyone? The Archon isn't overpowered, and 6 is not high. It just upsets people like KGB when it is used as intended against them. I understand; Sandworm upset me temporarily but that is what the units are meant for.
KGB, I think you want heroes to really be the whole focus of the game. It may develop that way but that's not currently the nature of this game. We shouldn't assume that Piranha/Snotling want to emulate DLR, as good as that game is. I'm sure several of us have a copy. We can run a few PBEM games with DOSBox if anyone else wants to, could be fun.
I like the idea of moving secondary hero strengths over to Ability Points. If you do that with spells also, what will magic users' main ability be?
Negate abilities must never stack with units' negate. Negate is more than powerful enough already!
Morale and Fear should not lightly be given to heroes. KGB, I don't like the idea of more rewards for stacking heroes. I think that's a major step in the wrong direction. So I disagree with both your proposal and your motivation. Further, Warbarons is sufficiently divergent from DLR that I think it's unproductive to compare what worked for heroes there with what works for heroes here. Beyond that objection, and an insistence on some separation of powers (at least never allowing a hero to specialize in fear/morale), I'm always in favor of allowing heroes to purchase varying abilities for balanced costs. Predictable, linear heroes are boring as hell. Maybe all heroes could have access to spell-like abilities within the Hero Points area? One problem now is that their secondary abilities are not sufficiently diversified by amplifying the power of some for each hero and varying the choices and costs for each hero type.
The idea of an automatic increase of the main attribute each level is appealing to some degree. But I do enjoy the option to forgo that increase when it grants me something I need more. Personal hero strength to fight off an impending counterattack, as in our test game? Territory bonuses? (since removed, but used to great effect by me in Beta3). It doesn't seem to be "too complicated" for anyone, even though they may make bad choices when given the option, like preferring to up the hero's strength. I don't think we need to protect players from themselves too much. to me, it stands as a poor reason for a change.
KGB, we both are in favor of a one-hero build where your choices define the hero. I don't know what makes that so objectionable, given that it's the best of all possible worlds. In fact, since our last discussion to that effect, the most advanced RPG's of the single-hero RPG genre have all gone that way. Just think of Skyrim. I'm still waiting for the CoD morons to wake up and smell the coffee, allowing players to define classes with a points-out-of-total system.
It's easy to implement, easy to balance, and especially easy to expand upon. But that isn't the flavor Piranha and Snotling want for their game.