Shadowplume

FE is neither an expansion nor a sequel. Call it a reboot, or a remake. Just be sure to distance this game from the wreck that was WoM.

Is Fallen Enchantress still technically an expansion to War of Magic, or has it officially become a full sequel?

So is Fallen Enchantress going to be a full sequel, not just an expansion to War of Magic?

There is a noticable difference between the playstyles of the Kingdom and Empire factions, but the only real difference between two kingdoms or empires (e.g. Altar and Tarth) is their color scheme. Stardock should alter or expand the individual races so that each provides variation in gameplay, strategy, and style, not just aesthetics.