I like the idea, it sounds quite fun. :]
Minor suggestions/questions:
Some head movement would make the sprite even better. Will the battles be like Earthbound/Dragon Quest games where you see it from first-person? Also, to make it more stealth-based but retain RPG characteristics, maybe gain the initiative in battle by striking or surprising the enemy from behind? Perhaps even assassinate them quickly and not have to deal with them in battle mode?
Just some ideas!
Thanks!
-About the head...the spriting style is heavily based on Final Fantasy 6. And in Final Fantasy 6 the head doesn't move up and down when walking up or down, but it does when going sideways. It's weird, but it's how it is. I don't have to copy that though, and it does look peculiar. Maybe his hair should move too, but I don't know...
-The battles will be a lot like Dragon Warrior 1, first-person, one-on-one, little animation. That's where the kit seems to be going at first and I'm fine with doing things that way. But there will be differences like ammo, and more status effects.
-That's a great idea! Sneak up on the enemy to get initiative, but let them sneak up on you and it's an ambush!
-That idea could work, and actually makes me think of Mario and Luigi. I'll have to think about it though, assassination just doesn't suit the main characters personality very well.
I realized that I haven't thought of too many "monsters" for this game yet. I have several ideas in my head, but I want to keep it simple and have fairly few enemies. At first you'll be fighting mainly enemy soldiers, with guns and other realistic weapons, but later you'll encounter real monsters like hellhounds, drakes, and elementals, changing things up significantly. I'd like to make them behave differently on the map, but that might be difficult. For example, it would be harder to sneak up on a hellhound because of their heightened sense of smell. Or, sneaking up on an elemental just isn't possible because they are a physical manifestation of magical energy, and they can sense you by merely your spirit. But that gives me an idea for some kind of anti-magic equipment. Like how a cloaking device would make you invisible to sight, some kind of magic distortion device would make you invisible to magic-based detection. I hope that's not too complicated.
Weapons and equipment will follow the mix of modern, fantasy, and futuristic. You'll start with normal weapons like knives, guns, and grenades, then acquire some weirder stuff like ice lasers, enchanted weapons, and other fun stuff. I don't want to go too overboard though.