I second sweatyboatman's dialogue suggestions, especially that "far beneath the withered... blah" at the beginning of the game. I have NEVER been able to get my custom sov/faction text to show up in that window ever. Ditch it.
Other thoughts:
Instead of the equip/trade/ok screen can we just have the sov/hero inventory screen with scrolling arrows for multiple heroes in a stack and the ability to assign the item right away? I noticed you forgot to equip the poison vial to your sov when you first found it.
The Fame icon should be in the popup with the lair cleared message: +1 Fame (symbol). I hope there are fame multipliers for epic city battles or sov/sov battles. Or victory against great odds.
Also, could we at least get a figure outline/paper doll for our heroes/sovs for item equippage? ala HOMM3? A little more intuitive and fun.
You never built on the shards within your ZOC throughout the demo, could the yellow turn button be expanded to prompt you about undeveloped resources in your ZOC? Please make this available ESPECIALLY when you unlock the NECESSARY tech for an initial build or an upgrade.
I lol'd at the ctrl-n at the beginning with the essence-less start. A special capitol building that gives +1 essence per level would go a long way to making the capitol special and fun. Or use the governor traits mod from Emmagine and the unit traits from Dsraider to spice up the cities and the unit abilities.
Can we snake a tile or too as the city grows like Parrotmath's mod?
The tactical battles look awesome! Love the new mechanics. Agree with Nichtganz as to the "casting" of special abilities at the start of combat.
Would love to see a special morale ability that occasionally gives a unit two moves in a row. Or make it monster only
Please give me the choice of ALL basic weapons at game start and let me improve them with research. Crude/Basic/Advanced/Masterwork or something like that. The Armor techs over time make more sense, but the weapons restrictions are silly.
Give trained units a bonus trait every 5 levels or so to make them more interesting/deadly/usable as the game progresses. Fix the Upgrade system to be more consistent (i.e robes vs. leather breastplate, one needs crystal, the other doesn't). Or make it available as a default option.
Definitely develop a summoner path and give summoners access to special units no other sov can get based on different magic types. Joeball123 has good ideas above.
One other fun idea ala Magnar's slaver trait. If I defeat a settler unit, my nearest settlement should get a +30 pop bonus.
Keep it up, you guys and gals are making me drool!