HoMM 5 >Magic
Overall, the magic system of HoMM4 was fine. However, there is one major issue. Every school of magic has a specific subskill which determines the power of the spells. However, this skill only applies to spells that have numerical values, so only chaos and nature really benefitted from it. Overall, probably only 25% of the spells had numerical values and were determined by the subskill. For example, take order magic, with it's subskill of wizardry. The only spells that are influenced by wizardry are the illusion spells (there are two) and the three direct damage spells. All other spells have fixed numerical values and are not influenced by wizardry at all. If these five spells are not used (which is often the case), then the wizardry skill is just a waste of XP, only to fill up the requirements for Order Magic.
My proposal is to make the subskills work, more or less like the elemental magic skills in HoMM3. The same spell had different effects with different levels of skill. There will not necesarrily be a new effect for every increase of the subskill and the effects will not be as drastic as they were in HoMM3, where one point of magic skill made the difference between a single spell and a mass spell.