Hi Toby, thanks for introducing yourself. I hope you don't mind being grilled in your introduction thread, but there is a lot of important stuff in your post.
I'm happy to see that two out of three features that need a lot of improvement are being addressed in v1.1 (Magic and city building, third being combat), but to be honest I'm not very enthused by the proposed changes.
I like that population is becoming more important, but I don't see how the specialist system will improve the game. As far as I can see it's main benefits are:
1) You can instantly see how much 'free' (unoccupied) population you have left.
2) By becoming a global resource, your population is more mobile (possibly speeding up the game by not having to wait on people moving into your city before you can build something).
The first part is a non-issue for me. If you want to build something, you can just look at a city to see how much free population it has left, or you can go to the city list to check all your cities at once. The second part, IMO, just dumbs the game down. All your other resources are already global, making population global as well is not only silly and completely unrealistic ('commutes' between cities used to be days, not the few hours it takes now), it also removes any restrictions on what you can build where. There is nothing stopping you from building a lot of buildings in a brand new outpost on the other side of the map, unless some (arbitrary) building limits are reintroduced. Sure, some of the more interesting buildings can only be build in higher level towns that have large populations. But (with the number of specialists being equal to the number of citizens), what is the point of separating your population from a building location if you're then going to require a certain number of people living in the city before you can build certain things? How is that better than just requiring a number of unoccupied people in a town before you can build something? If relatively few people are required for 'simple' resource producing structures, and a larger amount for the 'high level' buildings that give a % increase, you'll end up with pretty much the same end result, small towns that produces small amounts of resources and large cities that produce large amounts, without the silly intermediate step of global specialists.
As for the changes in the magic system, I'm with Annatar on the character stats influence on spell effects. Having certain requirements for casting a spell is fine, but having them always do the same amount of damage will probably result in the same spells being cast every time.
What I am more concerned about however, if I understand it correctly, is that your population will now also be able to produce mana through buildings. Not only does this not fit the lore, but it will also make it more difficult for a player with a small kingdom who focuses on magic to keep up with bigger kingdoms. No matter how much he specialises a city for magic production, he'll lose on the magic front to a player that builds two cities focused on magic, and eventually to a player that builds lots of cities with a few magic structures in it. I'm not saying everything should be completely balanced, but it will make the 'small kingdom' strategy even more difficult or impossible.
If this is implemented, magic will just become another global resource. I don't mind that mana is stored globally, it is the only resource it makes sense for lore-wise in fact. But if it's produced like any other resource it won't feel special anymore. What I'm afraid of is that the game will turn into focussing your population to produce 1 global resource to win the game, doesn't really matter if it is gildar, weapons, diplomatic clout, or magic. What I'm trying to say is that different systems interacting in different ways make a game interesting, not a single system that is used over and over again. To quote JSJ101;
IMHO, this game needs less simplification, not more.