Well, you're right at everything about the Trananimals. As it concerns your system, I happen to find what you've done with the Attributes simplification rather whileworthy. Where I do find your approach rather questionable is about the powers, IMO, FS fucntions quite well with four different power types: Gun, Fu, Sorcery, Creature. Anything less would make the system and setting less appealingly rich in my eyes. Like you, I loathe duplication of powers for its own sake, within a single genre setting; given that FS works like a crossroads of severla genres, I do find the rooster of the four power types above reflects it well.
Note: your sideline comments about Star Wars have got me thinking, and after some cursory checks I made about the present state of the game, I'm presently reconsidering about branching out my RPG expertise to that game too (so many nifty games to play, so little time). Would you kindly lend your expertise here
Right, I've decided to remove the Creature Powers skill altogether. Two reasons; firstly, the skill itself and the idea of "monsters" as PCs doesn't really fit. Secondly, I've removed all the powers that require it but one.
The list of Creature Powers I'm retaining is:
Death Resistance + Inevitable Comeback
Darkvision (Friend of Darkness) - ignore penalties for darkness
Transformation will just use Willpower. I've appended Friend of Darkness on there as a creature power for those who can see in the dark. I haven't really seen any other Fu powers that would make an appropriate addition there.
I am tempted, however to add some blend of Fox's Retreat and Willow Step to the Weapon schticks. Basically +3 to your Dodge AV whenever you make an active dodge. I deliberately didn't go with the Willow Step variant, because it has a 0 shot cost which is abusive (remember the Horton Utilities?).
Given your list, I find the second reason good justification for removing the skill, even if I'm not going to adopt or endorse it, since I wish to retain the canon list of Creature Powers in its full glory. However, I do find the idea that "monsters" would not fit as PCs terribly outmoded and restrictive. Come on, even D&D allows to play them nowadays and the meme that you can play "monsters" has been an integral part of the hobby and genre for at least 15-odd years nowadays: World of Darkness, anyone ?
Outmoded or not, it's something I've never agreed with. A redeemed supernatural creature in a Hong Kong inspired game, sure. But not in traditional fantasy, especially since mine is more influenced by sword and sorcery (where there are only humans, and all non-humans are foes of humanity to be wiped out) than high fantasy.
In any case, these people aren't seasoned, regular roleplayers. I doubt they'll even consider playing monsters. They've never played any roleplaying games, D&D, WoD or otherwise. Two have played CRPGs or MMOs, all have read and watched LotR but that's about it.
I'm looking to set it up such that there are humans and some people are "demon-blooded" and thus have a few weird traits (ie Creature Powers). They've requested that they make characters before we discuss a scenario, but I want to discuss a world with them before that, and establish ground rules. Like what races there are present. If I could avoid the usual elves, dwarves and halflings business, I'll be happy.
As it takes the specifics of your games with a rather inexperienced players' group and your personal preferences, I find your position quite understandable.
My comment was more general and related to the default mainstream level of RPGs nowadays. Given players with minimally decent RPG experience, I think it is perfectly normal to allow "playable" supernatural creatures or non-human races (playable typically means possessed of a sentience, self-awareness, and ability to self-determinate one's behavior akin to humanity, sometimes it also means roughly humanoid, for familiarity) as PC types in any games that support such as a regular presence in the setting. Which definitely includes supernatural action-adventure like FS, or vanilla high fantasy.
I would only point out that, notwithstanding the specifics of your game and your personal preferences, "default" or "traditional" fantasy fiction or RPG is rather more akin to high fantasy than to sword and sorcery. In sum, it's your game, do it as you fancy. I would only find it rather questionable to take such exclusion as a general rule.