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The potential is there: several FE games means different worlds, characters to choose from, enemies, etc.

I don't think the death system is necessary or that it would work with people.
Never played a Musou game, so i have no idea if characters "die", but i don't think losing the few characters at your disposal would be the best idea.

The crest idea would actually be cooler if that would bring forth another AI or different enemies to keep the game challenging.