This all sounds great.
But I'm going to ask to please, at least consider, focusing on the civilization building aspect, rather than the hero-buiding, in the role playing.
By this I mean: if the civilization build mines and foundries and researches smelting steel, then the hero and the armies get the benefit of steel armor and swords. If the civilization has a college that researches a lot of magic, then the sovereign gets enchanted swords and armor and spells.
But not this: the hero goes into a dungeon and after saying a troll he finds a wand of increased harvest +10%. Or if the sovereign is level 10 he can produce blacksmith shops capable of making arrows. Not that. Please.
You might say it is kind of like how I want it already but no it isn't. Well yeah kind of it is for the armies but not for the hero and champions. While what is available in the shop does follow the technical advances of the civilization, most of the gear I end up wearing is found adventuring, and it ends up with a disconnect between how my sovereign and key champions are geared and what the focus is of my civilization.
Well I'm sure you guys have a bunch of great ideas and I'm happy to see the outcome, but making the fantasy-civilization-building more interesting with less of an emphasis on war would send elemental in an interesting and unique direction, rather than following well-trodden ground.