Being an avid reader of DL (I think I have 70+ books) I would be very happy to see this mod made.
Really, the only custom area I would worry about is the High Clerist Tower. Sure, it would be nice to have the other custom cities, but really its not a major issue. More like something to add in after you get the rest done.
4 years per turn seems like an awfully long time. If the landmass is smaller, you would want a smaller time per turn. Plus, if possible, you could shorten the amount troops and such can move. Im just now re-reading the Elven Exiles books and a small band of elves were able to travel from Khur to Qualinesti in like 2-4 weeks.
Speaking of Khur, dont leave them out of things. Having Egypt, the Turks and the Moors would be perfect for the different tribes of Khur.
Since your setting it in the 5th age, Draconians would be rare. Not too many left and those in the city of Teyr probably want to be left alone, since they only found females in the last 30 years. If you really want them in, Id have them be recruitable only by Nerakans and even then they should only be available once every so often and be very expensive. Maybe not retrainable too.
The only other thing I will mention is be careful on which towns you add. Putting in Solace for example probably wouldnt be a good thing since its unlike any town. Would be silly to see Solace as a major city.
All your other ideas and such are great. Looks like your really on the right track to making a good mod. I just might have to keep an eye on this and put in my thoughts, if you dont mind of course.
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