I'm not penalizing anything. In the existing rules non-magical weapons can't harm incorporeals. This doesn't change that, but it does make non-magical weapons more effective across the board.
The alternate rules here already add the full enhancement bonus to the max dex bonus. Are you saying that you think that's too much?Maybe 1/2 the bonus to maximum dexterity bonus?
Understandably, but it feels only fair.This is going to slow down gameplay. A lot.
It was always character level or caster level, but it should be more clear now (I hope).And it makes most magic properties on weapons less useful to fighters than they are to gishes, so you might want to change it from "caster level" to "character level."
I'm not sure what you're talking about here, to be honest. Again, crafting magic items always require the Item Creation feats before, this isn't a new limitation.I'm tempted to say this should go, and be replaced with a higher echelon of the Craft skill. You're limiting magic items pretty extensively like this, so you don't necessarily have to worry about associated breakage problems.
Sure, sure, but they still function much better than a "when you crit [...]" design would.Individual magic properties look mostly good, although the ones with saves are still going to cause gameplay slowdown.