This is something I suggested years ago... and most people didn't like it. Not one little bit. (Things might have changed, though.... /2)
I don't see a problem with using Arts to know things that are seemingly specific.
For example, who needs Area Lore to tell me where the blacksmiths are in a town if I have Terram, which tells me where they have to be?
Things get a bit hairier with "I have a good Mentem, so of course I can speak any of the Chinese languages," (though my Terram sucks so I have no idea where China is.)
For me, though, were I to run with my preferred rules, Mentem doesn't cover language at all, or if it does, it needs to Penetrate God's ongoing curse that makes understaning language difficult.
And what about using Area Lore to tell me that "Bob is the best blacksmith in town, has three daughters by his wife and one unacknowledged son?"
This gets into my feelings about virtues versus skills versus... I'm not sure what to call them. Everyone lives somewhere, but some people are better traveled. That's a virtue, not a skill. Rather than clutter an already busy character sheet with Area Lores, and other knowledge of that kind, maybe rely on more generalized virtues?
It also gets into my thoughts about the limits of Hermetic Magic, the kind not mentioned. I don't see Hermetic Magic as being able to provide you with a Name, true or not, except by reading someone's mind or coercing a spirit or something like that. I don't think it can produce writing, because that is itself a kind of magic, especially magic texts. (It is a seasonal ritual to write an Arts text, frex.)
Getting rid of existing Abilities is the big win from a playing perspective. If my magus already has 15 Arts, 25 spells, the usual assortment of virtues and flaws and personality traits (and a few unusual ones), adding 30 Abilities is just.... yuck. (And that's just for the Area Lores he has accumulated over the last century...)
One change that I'd love to see anyway is further reliance on virtues to allow ability at all. A character who doesn't have a warrior-like virtue ought never be able to develop into master swordsman, except insofar as he gets one of those virtues during play. Same for literacy, and any profession.
Then, even a non-magus might have a Professional virtue that unlocks a profession, a single skill in that profession that covers everything necessary; a guild master might have two (Guild Master and an underlying profession). Character sheet scrunches down.
We lose some specificity? I think AM has already reached the point where precision often comes at the expense of accuracy, or is at best noise.
Since AM shares a lot of DNA with games like GURPS, it is worth considering the ultimate uncurated conclusion, that a game that uses all the skills (thousands?) becomes unwieldy and unplayable. A GURPS fan might fairly argue that you aren't supposed to use all the skills. One game, say, about pro-wrestlers might have individual skills in various specific wrestling moves but with Nobel Prize Winning Greatest Scientist in the World being a 1 point Perk. Because in that kind of game, it matters immensely whether you are better at smashing someone with a chair when he seems down versus from behind (totally different skills, but they default), but being awesome at science affects your dialog, and maybe you have an atomic swirly logo on your headband. Another game has a skill for every medical subspecialty but none for Medicine; we're all doctors.
So I like it aesthetically in game (how well can you claim to understand Terram if you don't recognize a good sword when you see it, save that you cast a spell) and in play (Candlemaker guildmaster: Virtue: Candlemaker Virtue: Guild Master Flaw: Many Daughters Lustful +2; Knight: Virtue: Knight social status Virtue: Warrior (knightly style) Virtue: Essentially Chivalrous Flaw: Berserk Flaw: Single-Minded Flaw: Faerie Mount who is smarter than he is). How much do I really need to add to any of these?
Similarly, maybe you don't get to take Charm or similar everyman skills without an appropriate virtue. Anyone can be charming, but that's a matter of a good Pre, Com, some sort of special circumstance (Puissant Charm versus Good Pre as a virtue) and so on. Being an expert charmer that allows for further development might take more.
I've gone off into the blue yonder here.
Note that Corpus remains too awesome, so I'd rule that if another Form makes decent sense, Corpus cannot be used instead but the converse is not true. (That is, athletics is always corpus, unless it involves swimming or holding breath underwater (aquam), or stunt riding (animal) or climbing a rock face (terram) etc.)
Needless to say, I prefer this direction.