Originally Posted by Shadow
Wands and staves do add to you magic damage btw.
That was just a minor part of the suggestion, but good to know
Would it be possible to add a Min/MaxSpellDamageBase and Min/MaxSpellDamagePerLevel to put on items? Also, a LevelsBetweenSkillCostRaises to act on BaseSkill's CostIncreasePerLevel (making the cost of spells go up only every few levels) would be great. I'll try to cook up a vision of what I'm describing with those.
Also, I agree with Destro that strong AOE spells like Earthquake and Maelstrom should have a cooldown (ReuseTime) to prevent spamming them at super-fast frequencies with cast time boosts, thus preventing them from completely dominating the game.
And regarding the armor requirements, they should go up faster. As you go up in levels, you find more and more items that supplement your stats, and they eventually exceed your own point investments. However, they're still linear as a function of your level -- they're just a much steeper linear curve. So just modifying the derived items -- SwordTwoHanded2/3 etc to have higher STATsPerLevel could be the best solution.