I agree to the level scaling thing. While I haven't played this hack, I've been adjusting most of the enemies to increase their stats and make them more unique like flan's having ridiculous physical defense in pretty much every other final fantasy game(even ffta had this but it was changed in ffta2). My biggest problem with difficulty atm is just I've out leveled everything. The game gives too much exp. In FFTA my problem was that by end game I was 10 levels behind because I didn't do enough missions, now in FFTA2 in midgame I'm 10 levels ahead and there is no challenge. I just send my mage to the front line and nuke everything.
Hm. Yeah. I guess for event purposes it'd probably be a problem. I don't thinking changing his race would cause a problem, but the sprite for events and overworld probably would. I'd settle for even just his battle sprites being changed.