Being able to fall safely from heights is part of being a dragon slayer (people who attack flying creatures and can not take a fall don't last very long). Levitation strong enough to control descent is at least as reasonable as transforming into a dragon, which nobody seems to have a conceptual problem with.
There was a bug with not being able to walk over some objects. At least with the NA Xbox version I have not had any problems passing through trees, and the game has actually been too aggressive teleporting me out of situations it thought I was stuck in (trying to get up higher on mountains or buildings, get though places, or check behind stuff, etc).
With RPGs I usually avoid the main plot as long as possible to make sure I have explored everywhere and done all the side quests. Rushing through usually isn't a good idea even when it is possible or practical.
The combat system is pretty heavily level dependent. So far I have not run into any difficult sections where I couldn't just go somewhere else first.
I though the new insights were the best part of mindreading. Funny or interesting comments are great, but IMO stat/skill points are the main motive for mindreading. Of course it would be nice to get comments in addition to any tangible bonuses.
More and larger scale consequences would be nice, though that would significantly increase the development time, etc.
