No true magus deals with threats at anything less than Arcane Connection Range?
(I think you included the wrong section in your quote - makes more sense re talking about "distant reach to touch something" - but your point is well taken. Such is the life of a Flambeau. ) 
Fixed.
No, I don't read your posts, remember?
Believing it more and more. 
Just to give the opposite input, one of my characters recently invested a leather glove as his talisman.
Why? It's cheap, and in a few seasons it'll give him significant boosts to effectively all spells cast at touch range or turning himself into a wolf (wolfskin glove).
But most importantly, he's young and it's cheap! If he needs a more powerful talisman when grows older, sacrifice this one and make a new one!
The glove gives him an advantage now - or atleast in under a year 
Yup. Going for a cheap-ish talisman whern you are young, investing 2-4 seasons in it in total 8from creation) tends to be something common here. It is useful when you are young and your casting totals are quite low. Then you invest 4-10 seasons in a more powerful talisman later on. Staffs with 3-5 components are popular here. Normal design goes along the lines of Opening, tough staff (MuHe(Te)), a pair of effects that the magus cannot spont easily and that has a fair rate of use. This can be a combat spell if the magus is not a combat dude. Teleport (either tactical or long range sometimes with linked triggers), invisibility, field healing (bind wound, recovery bonus) and InVi spells are fairly common; in the case of the Vi spells they tend to be constant use to have a vis/aura/might/spell detector active. At least IMS. 
Muto-talisman spells are also common to make it more wearable or less conspicuous.
Cheers,
Xavi
I think there's a strong desire to create the ultimate talisman, much like I see a lot of players with a strong desire to get their Arts/Lab totals high enough to invent a spell or instill an effect in a single season. It's nice when it you can do all that, but as a character it's a case of letting being perfect get in the way of good enough.
Make a talisman early, for your offensive spell(s) you can probably add at least your Magic Theory to the casting total, increasing penetration. For defensive/utility spells you may well end up moving these to the point where you may not be fatigued. And then the ability to add some useful enchantments to the talisman is also there.
The other thing it is useful for is making when you have an apprentice near the gauntlet, with nice high lab bonuses that aren't going to last long before you at best will be starting over with a ne apprentice.
I have a magus who uses a pilum of fire redesign as his primary offensive weapon. Wielding a quarterstaff talisman with a ruby set into a silver headpiece gives him that lovely +6 to fire related effects, very nice for punching through offending magic beasties MR. The staff gives some very flexible bonuses too, with control, destroy and deflect all in there.
I'd definitely second the opinion that you shouldn't try and get ALL-THE-BONUSES in there. Just think about half a dozen at most. If you spend more time than that on a talisman, then you are really specialising and can redo it later on when you are more powerful.
I'd have a think about what kind of spells you want you magus to be casting. Does the magus have a focus or potent magic? If so, complimenting that can be very powerful. Is there a powerful spell that you can learn but can't quite cast successfully in a hurry, a bonus might help there.
Loving the ideas about the magical container protected by MR and the flambeau with a chain is genius!
My current magi has a focus in vine plants, including calabash (bottle gourds). He can already ritually conjure a tower-sized gourd (to put his lab in), and there is a strong temptation to enchant the 50' tall gourd as a talisman. Then make it capable of flying, and being shrunk down to fit in his hand (not necessarily at the same time).
...though his Magic Theory isn't even close to high enough. Someday!
That alone is a great image.
(A building/lab as a talisman... mmmm....)