On the subject of Magic vs. Power vs. Optional Rules:
Since this is a community project, and would hopefully involve community members playing it in the furture, I would recommend we start with just the core rules. Or at least a location that uses them as a starting point. This way, those who just want to run a standard D&D game can just go for it and use that location. It also serves as a point for others to port the core rules to their specific region/project.
Now thats the starting point. Many people have shown an intrest in branching out into optional material, which is fine. There is TONS of optional material out their from Wizards and 3rd party publishers. This would make each region unique and interesting, plus give members more options. If Chaosevoker wants to run a heavy Psionic game, then he runs a group out of that region, or if players decide they want play warforged and shifters they can have someone run Macrovore's region or port characters from it at least.
There needs to be some streamlining though. Power level, for instance, should be fairly even across the board. Placing a high powered Forgotten Realms type region next door to a bronze age Testement region is just asking for trouble.
Just my two copper pieces.