XP - the quests are low on XP/second in comparison to other level 3 quests and even lower in XP/second when looking at Level 2 or Level 4 quests. The entire chain gave me between 10 and 14 XP/Second. In general on life other Level 3 quests fall between 15 and 20, level 2 and level 4 quests land about 25 XP/Second.
To make the XP worth while it needs to be upped by about 20% on the base XP on Normal Hard and Elite. Not sure on Casual.
Random Loot. Running a level 3 Character, with a Medium Loot Gem, I had horrible luck pulling Random loot and end rewards. My luck was so bad I barely pulled any Level 3 items and no Level 4 or 5 items even though I should have been on the Level 6 loot table.
Named Loot. As I wrote in the Named Loot Thread, all these items should be Min Power Level 4 Items (5 prefered) rather then the Min Power Level 3 items with Armor and Weapons being Min Level 2.
Location - In PnP the Keep of the Silver Flame is located near the Livewood Theater (in what DDO Calls the House Phairlan Enclave) rather than the Marketplace. With Level 3 quests the location is a barrier to running the content more. By the time you clear the harbor you have out leveled these quests, with their low XP, Low Reaper XP, power level 3 loot, and some challenging quest play, you should strongly consider moving the Keep of the Silver Flame to the Harbor.
Level - Level 3 is a challenging spot in the game for content. Players completing level 2 quests in the harbor have a number of options, some of which gets kind of funky with Tangleroot and SHan-to-kor. I hope keeping Catacombs level 3 indicates that you would like to standardize the levels in Tangleroot and Shan-to-kor up in the 5 to 6 range.