Ok, so wow. Updates released in the middle of the night and we already have nearly 30 posts. Only have time to skim read them. I think I'm ok with the latest version, but have some questions. Yes, I would be ok with Matthew's version, mostly because I probably don't need the Cabal set with that version and can offset slot losses with those.
Onto questions.
1. If I start out casting a 2nd or 3rd level spell, but swap it out for a lower level spell, can I still cast it as a FA? I hope the answer is yes.
2. Similar question, if I use Crown of Expertise to cast a 3rd or 2nd level spell, can I cast it as a FA?
I'm assuming the hp caps are there to account for unintended consequences as they are close to current high end limits. We're back to FA spells leading to more overall damage, but total damage that can be done in a single round is not impacted that much. Right now, when I cast a fireball I'm getting 20+20(MEC)+32(spell bonus) for 72 damage. With the added eldritch item next year that would go to 73. So I could lose 3 hp of bonus damage. I can probably dump lenses of focus to add Psyfere's and dump Arcane Belt to add Orions Belt and gain some slots back. Yes, I'll lose a little damage on 1st level spells, but very minor compared to what I'm losing with those lost slots. Cabal set is still needed, otherwise I really gain very little.
I guess the bottom line is that it's ok, but not exciting. Sorry, Jeff. I can see you're trying really, really hard to come up with the right formula to balance the game and excite players. It's just really, really hard with a class that tends to be a bit complex.
Random thoughts. Putting a damage cap on wizard spells seem like an admission that power creep is now an issue. It opens the door to a new tactic and I fully expect and want caps to be put on other classes or I just continue fall behind. Putting caps on damage will probably irritate some players who like to play with builds and squeeze every point of damage they can. There's no point to doing that with this limit. Once you hit the cap (and I think we're already there), you're done. The cap also limits future token designs because now they need to take the cap into account. What's the point of future spell damage tokens if we're already at the cap?