I'm interested if there is still room. 
My first vote on village goes to a non-canon village. If that is not acceptable then I vote for Suna (sand) and Oto (sound), two villages that hasn't gotten enough love. 

I agree with Masaki on all accounts, except perhaps the one where these things are an issue to begin with. Let me rephrase that, once a character becomes powerful enough to get/unlock/learn/whatever any or any combination of these "ultimate techniques" I feel that they are no longer valid as player characters unless every other player character is just as strong, in which case the world will end in T-10 posts. 

Hybrid characters have not been that much of a problem in games I've played, but Masaki makes a good argument here and I support it. 

An argument/restriction I would like to raise myself is sort of connected to Masaki's about the ultimate techniques. It's about doujutsus (eye techniques).
Doujutsus are cool, I think we can all agree on this. The problem is that because they are cool people want to play around with them. Specifically, a lot of people want to play with a doujutsu, a lot of people have created their own (more or less original) doujutsus and are very proud of them. Some of them should be, I've seen some really great concepts. However, part of the coolness comes from rarity, and doujutsus should be rare. Think about it, in the canon we get three, the Sharingan, Byakugan and Rinnegan. One of these were believed to be a myth until Pein showed up. Let me tell you, it's a lot less cool when 3/4 characters in a game use a doujutsu. 
Therefore I believe that restricting doujutsus over all to about 10% (rounded up) of the players should solve the problem. In reality that would get us one or two freaky eyes in the game.