Finally read through it all. Took me an hour and a half, but I've done it.
Okay, now, onto my feedback:
The idea to reduce collision tests and to change most attack bonuses into hooks is a good one. Keep it.
The proposed change also contains an unnecessary but easily justifiable nerf to TWF. Omit it for now. Instead, use values that do not nerf anyone's DPS. While the goal is commendable, changes that try to fix several issues at a time never go well past the players. Grazing hits are a good example of this: it tried to address several issue at once and very few people actually got it, and most posters actually viewed "fixing many things at once" as one of grazing hits flaws.
Even though the nerf in question would probably result into an improvement of game balance, the community's perception of the change matters a lot.
That does not mean you should not nerf TWF into a future update. In fact, you probably should but the key phrase here is "in a future update" - not now. Use this opportunity to buy Turbine some good will credits from the playerbase and announce that "based on feedback" you have decided to modify the values so that the change "would not result in a DPS loss for TWF characters." A lot of veterans believe that Turbine does not listen to them, and here is an opportunity to prove them wrong. Push the nerf to a latter update and let us digest the change to attack rates first. Smaller pills are easier to swallow.
Another positive aspect of separating the nerf from the lag fix is that, in the event the lag fix does not address the lag, you'll have avoided a lot of unnecessary hate. Like JayDubya said earlier in the thread, "if you make these changes, and the DPS lag doesn't go away. Then you get a lot of really angry people."
Talking about player frustration management, you'll notice that there are a lot of comments like this thorough the thread. This is why many others and I have stressed - and still stress - the importance of easily affordable respec mechanism. DDO's current approach to them is completely backward. Instead of being easily affordable, most of them can only be done by spending real world money.
Allowing players to adapt to changes you make would help in reducing the frustration caused by nerfs. On the other hand, asking them to pay you with their hard earned money for a change that you made will most likely anger them furthermore.
I think that the grind pint is an important one that has not been brought up often enough. It's not healthy for a game to have a fighting style that is better simply because it requires more grinding. However, it's equally not healthy to have a fighting style that is as good as the others but requires twice more grinding.
Ideally, it would be best if one-handed weapon dropped somewhere between two or thee times more often than two-handed weapons so that the demand for the two would be similar. As for crafted weapons, like Green Steel, two-handed weapon should require twice the number of incredients than one-handed weapons so that the griding would remain comparable.