A note on raging and power attack:
Generally speaking, a bonus to hit is also a bonus to damage, since the higher you roll the more damage you deal. So you favor a +1 to hit over a +1 to damage. By the same token, a penalty to AC is also a penalty to soak, because you take more damage the lower you roll on the defense roll.
This changes Rage significantly and makes power attack well-nigh useless. Power attack is fairly self explanatory: trading "to hit" for "damage" is not worth it because "to hit" translates into extra damage as well. In a normal D&D game, Power Attack is a way for fighter with massive attack bonuses to convert that into damage. Here, it does worse than nothing. Perhaps we could house rule it so that a one-handed power attack offers a 2-for-1 trade, as a 2-handed attack does in the normal rules, and a 2-handed attack offers a 3-for-1 trade. This sets up again the original dynamic of hitting harder but less often.
Rage is still fairly useful. The Strength bonus now is doubly beneficial, because it adds to "to hit" AND "damage." However, the penalty to AC and the bonus to Consitution negate each other in terms of attack rolls (2 more points of damage very time you get hit and 2 more points of soak), and actually a bit more than that, because you get hit more often AND every time you get hit you take more damage. The extra soak is actually extra DR with everything that doesn't require an attack roll, however.
So the overall affect is +2 hit and damage (which means +4 to damage), you get hit slightly more often with no damage change on any individual hit, +2 to Fort Saves and +2 to Will saves. Still worth it, methinks. Perhaps some extra soak is justified (1 or 2 points).
Anyway, I'm ready to join in.