I was wondering how the devs were planning on implementing magic into the world. Now, from what I have read so far, I believe it is unlikely we are going to see anything like 'mana' which we use to shoot fireballs around the place and insta-heal up our buddies.
It seems to me that the magic in this world will be less obtrusive and noticible, as in LOTR. Gandalf was v. powerful, but not in a flashy 'Harry Potter' kind of way.
In line with a more subtle approach to magic, (although I am sure the Dev's have already thought about/planned this at length), I am going to offer one suggestion.
In Ultima 8 the Avatar has to learn the magic of the four titans to escape Pagan (although only three magic systems were avaliable). One of these three, which belonged to the Sorcerers (fire magic), was particularly interesting.
The system worked like this...
Rather than learning certain spells as a skill, which are then deployed by way of mana, all magic effects were tied up to special items that could be imbued with said spell, such as wands, rods, skulls and such. These items could be 'charged' with a certain number of uses.
In order to 'charge' up these items with magic effects, you needed access to a pentagram. On top of the pentagram you would place the magical reagents (ingredients) needed for the particular spell. So, after gathering/placing sulpher, or the eye of newt etc kind of objects on the pentagram, along with the item you wished to charge, you would light the candles surrounding the pentagram, and (by double clicking on the pentagram), say the magic word, and hey presto, you have a charged object.
While I am not suggesting that the devs copy this system, I think that there are elements in it that are very interesting and suitable for H&H. Especially in that it places emphasis on the procurement of the right kinds of ingredients, the collection and trade of which could be very interesting/stimulating for economies.
This could be a way of making people who want to cast necromancer kinds of spells, such as summoning a group of undead, very evil bastards indeed.
Say, for example, that one particualarly nasty spell requires 'the heart of a friend'. In order to get said heart, you need to +murder+ someone on your kin list. How sick is that? People who decide to study the black arts should be the most villainous of scum, that really make other players want to do everything possible to hunt them down. They can't just be emo looking guys who hang around graveyards.