I'm not an old timer (I've been playing for 2-3 weeks at present) but I'll give my opinions.
A little background that may color my answers:
I played the 'original' DAOC as my first ever online game back in 2004-2005 and haven't touched it since. I've been playing this version for a few weeks since I've been in recovery from surgery. Maybe 2-3 hours a day online time. I have a list full of characters, but two "main" characters. One is a 56 Cabalist, the other is a 55 Friar. I've been limitedly involved with crafting on the Friar. Fletching is somewhere in the 400's with other crafting skills too low to mention.
As far as a character wipe is concerned, that really doesn't bother me too much. I've gotten pretty far, I think, in the short time I've been playing but I'm never opposed to starting fresh, especially if you feel that changes/improvements warrant it. However, I have not leveled all my crafting skills or farmed for hours for the 'perfect' set of gear.
Concerning your philosophy for the game, I think I would have to agree with you. Why on earth would anyone create a game that they didn't want to play or that they didn't enjoy playing? It seems that your intentions were set in one direction and over time things haven't turned out the way you originally planned. No matter how much I may like this game, I have to say this. This is YOUR game. Make the game that YOU would enjoy playing. The rest of us will either like it or not, but if the creator/maintainer of the game doesn't like the game then it seems like it won't stick around/improve. Just a quick question for clarification purposes: You say that "I don't really want to play D2". I assume that you are speaking of this server, D2Storm?
Leveling does seem a little fast for me, but I also think that mob levels are somewhat off. For example, in Tal Rasha's Tomb at the end of Act II, the mobs are level 63 or something like that. When I completed the "Kill Duriel" quest for the first time, I think I was level 40-45. Whatever the minimum level for the quest was, I was just a level or two above that. So this may not be a case of "too much xp" and instead be a by-product of constantly fighting (and being able to kill) deep purple mobs.
As a side note, the hardest thing about leveling my Cabalist was finding spawns of mobs to kill. It didn't matter that they were 20+ levels higher than I was and I was a "fragile caster". They and all of their friends died in seconds. My Friar is different. Leveling speed is much much slower than on the Cabby, but still pretty good. Certainly Twister doesn't compare to spell echo/AOE dots, and it actually seems a little bugged, but because of the 'fast leveling' I think it balanced it out fairly well. Now certainly I can hit 50 (or maybe 80 is a better comparison when I get there) on this server much faster than in the original DAOC, but I also felt it was much too slow to go from being a completely new level 1 player to a level 50 player.
I would also like to see more quests. I don't really know how you would do that and still stay true to D2 though. Maybe instead of new quests you could add sub quests. For example, if Dipplefritz is really that much of a nuisance then he should have been taken care of by somebody else by now. But maybe they have just never been able to catch him because he runs away at half life. So you would need to ask Charsi's help to fashion a special pair of manacles that slowed his running speed so you could kill him. Or maybe you would need to concoct a Rage Potion and use it on him in order for him not to run and to stick around and try to kill you. Both implementations would, of course, have special materials that needed to be gathered, or special places that the items in question had to be made, etc.
I think quests should be assigned XP. Or better yet, levels. Treat them as a mob. Or maybe as a group of mobs. Let's say a quest would reward you with the same amount of XP as killing 10-15 mobs of the same level. I think that's roughly the size of some small spawns of mobs. And let's have minimum levels to get those quests just like we do now. And let's work it so that these quests could also help with the "too many Unique items issue to". How about after killing the mob, you have your choice between a Unique weapon, a Unique chest armor, or maybe a socket wrench/combiner. Then the boss mob could be "trusted" to just receive the normal randomly generated items like normal mobs, but with some modifier that treats them as being a higher level than they actually are. And you would also cut out the farming of boss mobs for items.
Confused yet? Let's take the quest to kill Blood Raven as an example. Let's say the quest to kill Blood Raven is level 10. Since it's a level 10 quest, you shouldn't be able to get the quest below, let's say, level 5. Then, you have to kill Blood Raven, and let's say her level is 12 or so. The loot generator would treat her as a level 16 mob for determining level of items she drops. Once you manage to kill her, when you turn in your quest you should get xp for killing a 10-15 mobs that are level 10. So, if you kill her at a lower level (hard to do since she is higher than the quest level) you would get more XP than if you leveled up to her level and then killed her. And since the quest is level 10, eventually you would could out level it and not get any xp for it at all. But you should always get some reward and some coin. I hope that made sense.
I have no input on the PVP powerlevel zone, as I don't even know what that is!
Loot is a big, big issue. And I mean that because of the sheer amount of items and complexity. Diablo 2 had a large amount of random prefixes/suffixes based on level. In addition, there were different item types (magical, rare, unique, set, etc) and different item qualities. I think what made Diablo 2 loot so varied is that there were multiple "categories" and several "types" in each category. On D2 Storm, most of the time a staff is just a staff. It has a level and can either be magical or rare or maybe Unique. In Diablo 2 it could be a level 14 quality rare staff that has 3 sockets and 2-4 random prefixes and 1-4 suffixes. Diablo 2 loot was extremely random, even among the Uniques (and sets) that had a known property. A certain Unique bow would always have Knockback. Just sometimes it would generate with more than other times. Maybe the loot generator could be modified so that all 'magical' items had the bonus property set at 10, 'rare' set at 15, and Unique set at 20. (I'm not too familiar with DAOC-I'm thinking that the "Bonus" property affects the actual potency of the item. For example, if the "Bonus" is 10 and the life steal value is 27, then the actual value for the life steal would be less than if the item had a "Bonus" value of 20. Is this right?) Maybe just have 'magical' items have a range of values that is the lowest, 'rare' have a range that is higher, and Unique have the highest range. So the ranges for life steal for a level 18 dagger might be 8-14, 12-19, and 18-25.
I'm not familiar with the end game, so I can't comment on "replayability" or end game loot. What I can say is that I feel like I have a lot of money and no real reason to spend it. Aside from a house and the furnishings, there's not a lot of demand for my money. And houses require lots of money (at least I think they do, I haven't really checked into it a whole lot). My big money sink was going to be crafting. Specifically, (with my Friar) Fletching, Alchemy, and Spell crafting, with a minor in Armorcrafting. For some reason, I just like the idea of making all of my own equipment and putting all the slots in it and filling them with all kinds of cool bonuses. I haven't looked at spellcrafting at all, but I'm assuming I could add bonuses like "reduced endurance cost" and "increase style damage" and drop those in a weapon slot. If not, I'd be farming for lots of socket wrenches to remove the bonuses from drop items and placing them in crafted items.
What I'd actually like to see is a 'good reason' to level crafting professions. If we go back to the idea of certain types of items having certain "Bonus" values, then maybe crafted items could have the highest values of all, or at least tied for the max. I want my "Big Whacking Stick" with 15% reduced endurance cost, 80% chance to steal 250 life, and 30% increased attack speed. Crafted items in Diablo 2 weren't really anything special because there wasn't a lot of customization. That's where I think D2Storm could improve a lot and also solve the problem of custom coding 5 million different Unique items. Why not have all "Unique" items actually come from crafting? They wouldn't drop in game, but you would have all the "puzzle pieces" in the crafting professions to make them yourself! You craft the item (the "Big Whacking Stick"), then drill sockets (maybe have "Socket Driller" be a crafted item not available at the merchants or via drops?), make your Alchemy proc (or "Enchantment") and add it, then Spellcraft your Unique properties into gems (EG "[Open that Can!]: 15% chance to randomly open a can of whoopazz and instantly kill any mob except boss types" and "[Going NEO on 'em]: 10% chance to increase attack speed by 150% for 3 seconds", etc), drop them into the weapon (or maybe you have to use a Combiner for player crafted bonuses?) and get ready to roll out the hurt.
I can't comment on anything else right now. I don't think I've ever used a henchman and, just like in Diablo 2, I try to play the game without using potions at all. Yes, I've died a lot on my Friar, lol. Not really so much on my Cabby. It seems that casters (in plate armor, no less!) have a lot easier time than melee characters.
Anyway, that's just my rambling input. I think I might be off to try to level some crafting so I can make my "Holy Carp" staff that has a random chance to fling a fish at the attacked mob who is so dumbfounded by the fact that a fish just hit them that they are stunned for 5 seconds.