Hey Erik, glad you're looking forward to the game! I, and the whole team, are looking forward to getting it out there as soon as we can!
1. Each magic spell is created through a quest or mission which Prospero sends you on. I don't really want to go into more details on those quests for, in the words of River Song, SPOILERS! The are two main classes of spells, "Environmental" and "Battle". Environmental spells are ones that you would use in your everyday villainy, Taking Inanimate Objects, Floating on a Cloud and other goodies like that. Battle spells are combat spells and obviously include offensive spells as well as spells to assist in retreating for a battle, and healing spells.
2. Beer. Beer is how I celebrate most things! Seriously, we'll celebrate a job well done, and get working into our next project. Yeah, we've got at least the next two games locked in and another half a dozen in mind! Ideas are easy, getting them onto your computer, that's the hard part!
3. Honestly, I'm not sure whether we'll have difficulty levels for combat, we may and have certainly talked about it. Whether we can swing it for the game is a different story as it may involved a complete ground-up rewrite of the combat.
Shawn