[@Zeroth]: Ask and ye shall receive. 

Regarding magic: flavor preferred. I'm willing to be more lenient in favor of a more interesting setting in this scenario. With that said, I'm going to be judging everything on a case-by-case basis anyways, so if you want to throw more eclectic things at the wall to see what sticks, by all means. 

Re: Youkai: feel free to diverge from original mythos; heck, in this case I'm fine if people go full modern (e.g. Touhou). As long as the fundamentals remain it [i]should[/i] be fine. That said, when in doubt over specifics, just ask.

Re: power scale: leaning more towards the latter. Players shouldn't start too powerful, obviously, but definitely expect some scaling upwards over the course of the narrative.