A (imo) very badly tacked on plot. I wouldn't spend additional money for it if you have the originals - your ideas for weaving them together sound better than what was put out in that set.
Yeah, hirelings wouldn't get specialization. It's something you need to have levels in fighter for, which 0-level men-at-arms technically don't.
Henchmen get XP at half shares. I've seen debates as to whether or not they are supposed to count as a full share when dividing experience but only...
Another thought - I agree with the use of hirelings (0 level men-at-arms and such) and henchmen (leveled NPC followers). Hirelings are probably going to start becoming liabilities rather than help after about level 2; maybe a couple of dedicated spear guys protecting the M-U but that stay off...
I have no prob with raise dead, but to me DnD is a game, not a way to group-think a novel. Of course, if people have fun playing that way, more power to em.
But I don't think that even if raise dead were available in real life for grandpa it would get used very often. It might restore...
A newbie's (to EN World) thoughts
I started gaming about 6 months before 2e came out. I switched over initially, and then kept the parts I liked. I eventually ditched 2e (and lost the love for it) for a few reasons.
The FR grey box was the first campaign set I ever bought. I loved it...