Although I can't contribute much idea wise, I love your ideas Dusty. The idea of classic moving towards a more quest game is amazing. However, I don't think quests should be put out in a huge bulk. Like someone had mentioned, piece by piece. Like the scarf could be used to open up that one cave where the guard is moving his head around in a lot. Maybe he is cold and he wants the scarf. But then when you go through that dungeon, you find another item. You'll use this to open the next dungeon, which will be released at a later date. The Hera Hearts idea I love. The fact you'll have to get more hearts to survive the traps in the dungeon using those extra hearts is awesome. This still maintains the balance since we cannot use those hearts in PvP (unless someone changed your mind on it, I only read the first page.).
There is still one idea I've had in my head for a long time. No one really gets it, but I'll try to explain it.
Basically have the sword act like the items in your inventory (Flippers, bombs, arrows, etc.) Giving you the ability to switch around where you want to have it. Giving you a total of three buttons to freely put anything on. This gives you the option to not have a sword active. But when you do spar it comes back. Every time I try to explain this to people they say it's like Era but it is NOT. I simply want to be able to have three buttons to choose what I want in them, NOT have to have the sword active, and be able to freely place the sword anywhere within the three buttons.