Wow, those are some pretty major changes! Most of the character concepts I've messed around with made heavy use of the racial attribute exchange option (though weirdly enough, not the hook exchange). I will have to go back and see if they work with the new system. The changes to size and shield defense are also pretty significant. Though I'm liking the more flexibility given to the two 'find an item in your pocket' exploits.
Two suggestions (...that other players may hate me for...)
1. I'm surprised you didn't take a second look at longsword damage. It's always seemed to me to be 1d6 higher than most comparable weapons, and is also not consistent with 1-H sword damage from NEW.
2. The rules for building 'small' versions of weapons seems odd, unnecessary, and gives small PCs a weird advantage. If a smallfolk or a dwarf wants to take a small version of a longsword, that is a shortsword. No other stats are needed. Why let them buy what is effectively a 3d6+2 weapon which is more concealable and less weight than the regular version? It makes no sense; if you use a smaller weapon, it's going to have less leverage and (in general) do less damage. It's a shortsword. And so on with axes and clubs and the like. Sure in some cases it may be worthwhile to come up with small versions of odd weapons, but they should never really be mechanically superior to the bigger versions, and currently, they always are (because they're lighter and presumably more concealable but have no downsides).