Tyler Do'Urden
Soap Maker
Wow... this is the first thread I've posted that's actually gone anywhere 
Hopefully SHARK will poke his head in here any minute now... this is just the sort of thing he'd chime in on.
On Demihumans: I've wanted to keep the demihumans because I don't want to divert too far from the core rules, and I thought I could find a way to elegantly work in the existing races into such a campaign. This is NOT supposed to be historical Graeco-Egypt any more than Middle-Earth is historical 12th Century Europe- this is fantasy. Putting the common fantasy races in Al-Qadim, Dark Sun, and M:TG's Mirage (which I always thought would make a way-cool D&D setting) didn't ruin the flavor IMHO. There was a sort of Persian fey known as the Peri? I guess I'll call their nation Perinea- they can be the traders from the distant lands who worship the thousand gods. I'll stick with the Gnome-Djinn idea- I'll take the base gnome, and make them bald, give them pointed teeth and horns, and voila!
As for the fellow who said that he's a Jew and Jews are not Dwarves- well, I'm Norwegian, and I'm not a Dwarf either- but the Dwarves are always portrayed as underground-dwelling beer-guzzling Vikings, complete with runic alphabets, a language reminiscent of old-norse, and a distinct northern-european style. I was thinking, for a change of pace, I might try setting the dwarves in a different cultural mileau. I'm writing into the storyline that the Elohim (Dwarves) were once slaves to the Khemites who built many of their great temples and stoneworks.
I always thought that the Dark Sun idea of the feral, cannibalistic halflings was cool, so I thought I'd incorporate that into the setting.
Orcs as Hyksos? Done and done. I'll put the Hyksos homeland north of the Elohim, and there will still be a sizable half-orc population in Khem, descendents of the people of the invasion hundreds of years ago.
Kobolds and Yuan-Ti as chosen people of Set? Perfect.
Gnolls as chosen people of Anubis? Sure!
As for diluting the setting with Graeco-Roman elements- well, a big part of my idea is to portray Khem as a crumbling empire that has been taken over by outside invaders- and the PC's actions will be a big part of what determines whether or not the true Pharoah is restored, or whether Khem falls prey to the legions of Impiria or Perinea. I don't want Khem to be Egypt at the height of it's power- I want it to be a romantic but yet inhabited ruin, a realm of crumbling, ancient tombs and temples, of decadent magic users, and peoples trying to both pillage and preserve the land. Quite a bit like Dark Sun, actually.
I like the ideas for the use of the core classes. I'm thinking I'll add Psions and Psychic Warriors too.
Hmm... I don't think I'll bother to pick up GURPS- Egypt. I have quite a few books on Egyptian history and mythology already, and GURPS rules aren't too useful to me. On the other hand, I think I will need to take a look at Desert of Desolation, and at Egyptian Gods. Both sound useful to me. I'll probably pick up and adapt the Banewarrens too- I love Monte Cook's modules.
I'll probably incorporate those prestige classes into my game. Here's my list of splatbook prestige classes that I thought appropriate to the setting:
DMG
Assassin
Blackguard
Loremaster
Shadowdancer
S&F
Devoted Defender
Ghostwalker
Gladiator
Lasher
Master of Chains
Order of the Bow Initiate
Red Avenger (Khemite Only)
Warmaster (Impirian Only)
Weapon Master
T&B
Acolyte of the Skin
Alienist
Blood Magus (Must worship Set)
Candle Caster (Impirian or Hellene Only)
Elemental Savant (Human Only; Must Worship Thoth or Hermes)
Fatespinner
Mage of the Arcane Order (Must Worship Isis)
Mindbender
Pale Master (Khemite Only)
True Necromancer (Must Worship Anubis)
MotW
Animal Lord
Blighter
Foe Hunter
King/Queen of the Wild
Shifter
Tamer of Beasts
Tempest
Windrider
DotF
Contemplative
Divine Oracle
Holy Liberator
Hunter of the Dead
Master of Shrouds (Must Worship Set or Hecate)
Warpriest
SaS
Dungeon Delver
Royal Explorer (Impirian Only)
Spymaster
Thief-Acrobat
Vigilante
Virtuoso (Hellene only)
As for weapons, there aren't that many that need to be taken off the list- Morningstar, Crossbows, Rapier, Glaive, Guisarme, Greatsword, Ranseur, And all exotic weapons except for the Whip, Net, Dire Flail, and Spiked Chain. I'd also add the Khopesh (in Deities and Demigods).
With Armor, it looks like all heavy armor is removed, as well as Chain Mail and Chain Shirts. Breastplates are the heaviest armor available. To compensate for the lack of heavy armor, I think I'll bump up the skill point totals that Clerics, Fighters, and Paladins recieve, from two to four. In addition, I'm going to use the Khemite Ranger class in Necropolis instead of the conventional Ranger.
As for making a Pharoah prestige class, I think giving the Pharoah a template would probably be more appropriate. Depending on which god the Pharoah is devoted to, I'll use the Half-Fiend or Half-Celestial template to represent their powers.
Lots of great ideas here! Keep them coming!

Hopefully SHARK will poke his head in here any minute now... this is just the sort of thing he'd chime in on.
On Demihumans: I've wanted to keep the demihumans because I don't want to divert too far from the core rules, and I thought I could find a way to elegantly work in the existing races into such a campaign. This is NOT supposed to be historical Graeco-Egypt any more than Middle-Earth is historical 12th Century Europe- this is fantasy. Putting the common fantasy races in Al-Qadim, Dark Sun, and M:TG's Mirage (which I always thought would make a way-cool D&D setting) didn't ruin the flavor IMHO. There was a sort of Persian fey known as the Peri? I guess I'll call their nation Perinea- they can be the traders from the distant lands who worship the thousand gods. I'll stick with the Gnome-Djinn idea- I'll take the base gnome, and make them bald, give them pointed teeth and horns, and voila!

As for the fellow who said that he's a Jew and Jews are not Dwarves- well, I'm Norwegian, and I'm not a Dwarf either- but the Dwarves are always portrayed as underground-dwelling beer-guzzling Vikings, complete with runic alphabets, a language reminiscent of old-norse, and a distinct northern-european style. I was thinking, for a change of pace, I might try setting the dwarves in a different cultural mileau. I'm writing into the storyline that the Elohim (Dwarves) were once slaves to the Khemites who built many of their great temples and stoneworks.
I always thought that the Dark Sun idea of the feral, cannibalistic halflings was cool, so I thought I'd incorporate that into the setting.
Orcs as Hyksos? Done and done. I'll put the Hyksos homeland north of the Elohim, and there will still be a sizable half-orc population in Khem, descendents of the people of the invasion hundreds of years ago.
Kobolds and Yuan-Ti as chosen people of Set? Perfect.
Gnolls as chosen people of Anubis? Sure!
As for diluting the setting with Graeco-Roman elements- well, a big part of my idea is to portray Khem as a crumbling empire that has been taken over by outside invaders- and the PC's actions will be a big part of what determines whether or not the true Pharoah is restored, or whether Khem falls prey to the legions of Impiria or Perinea. I don't want Khem to be Egypt at the height of it's power- I want it to be a romantic but yet inhabited ruin, a realm of crumbling, ancient tombs and temples, of decadent magic users, and peoples trying to both pillage and preserve the land. Quite a bit like Dark Sun, actually.
I like the ideas for the use of the core classes. I'm thinking I'll add Psions and Psychic Warriors too.
Hmm... I don't think I'll bother to pick up GURPS- Egypt. I have quite a few books on Egyptian history and mythology already, and GURPS rules aren't too useful to me. On the other hand, I think I will need to take a look at Desert of Desolation, and at Egyptian Gods. Both sound useful to me. I'll probably pick up and adapt the Banewarrens too- I love Monte Cook's modules.
I'll probably incorporate those prestige classes into my game. Here's my list of splatbook prestige classes that I thought appropriate to the setting:
DMG
Assassin
Blackguard
Loremaster
Shadowdancer
S&F
Devoted Defender
Ghostwalker
Gladiator
Lasher
Master of Chains
Order of the Bow Initiate
Red Avenger (Khemite Only)
Warmaster (Impirian Only)
Weapon Master
T&B
Acolyte of the Skin
Alienist
Blood Magus (Must worship Set)
Candle Caster (Impirian or Hellene Only)
Elemental Savant (Human Only; Must Worship Thoth or Hermes)
Fatespinner
Mage of the Arcane Order (Must Worship Isis)
Mindbender
Pale Master (Khemite Only)
True Necromancer (Must Worship Anubis)
MotW
Animal Lord
Blighter
Foe Hunter
King/Queen of the Wild
Shifter
Tamer of Beasts
Tempest
Windrider
DotF
Contemplative
Divine Oracle
Holy Liberator
Hunter of the Dead
Master of Shrouds (Must Worship Set or Hecate)
Warpriest
SaS
Dungeon Delver
Royal Explorer (Impirian Only)
Spymaster
Thief-Acrobat
Vigilante
Virtuoso (Hellene only)
As for weapons, there aren't that many that need to be taken off the list- Morningstar, Crossbows, Rapier, Glaive, Guisarme, Greatsword, Ranseur, And all exotic weapons except for the Whip, Net, Dire Flail, and Spiked Chain. I'd also add the Khopesh (in Deities and Demigods).
With Armor, it looks like all heavy armor is removed, as well as Chain Mail and Chain Shirts. Breastplates are the heaviest armor available. To compensate for the lack of heavy armor, I think I'll bump up the skill point totals that Clerics, Fighters, and Paladins recieve, from two to four. In addition, I'm going to use the Khemite Ranger class in Necropolis instead of the conventional Ranger.
As for making a Pharoah prestige class, I think giving the Pharoah a template would probably be more appropriate. Depending on which god the Pharoah is devoted to, I'll use the Half-Fiend or Half-Celestial template to represent their powers.
Lots of great ideas here! Keep them coming!