Armor - donning time: I find that a lot of people flash-change their Armor, and this breaks immersion a bit to see the naked people buffing up.
Not really immersion breaking; my characters that have required to remove their armor always have clothing beneath them, as do many others I've traveled with. The people who are too lazy to make clothing for that occassion are just going to have to RP that their traveling companions get to pick on them for being a moron.
Donning times would just give Divine Casters more umph over Arcane Casters than they already do. Also, it would just waste minutes of time for people waiting to continue when their caster has to put the armor back on. I'd rather see either (or both) added to the module before giving this sort of script: Armor that can be crafted to have negative arcane spell failure, OR add a feats that can be taken to remove arcane spell failure (since that's there in NWN2).
Fear Effects: I would recommend a duration of 1d4 rounds + 1 round/4 caster levels for fear spells and effects. Failing this save means death and the end of an encounter... With a shorter duration it'd still be scary. I'd also go for the "Confused" AI, since attacking randomly makes more sense than huddling in a corner to be beaten to death. Another idea would be to make the PC unable to attack, but able to flee normally.
I like the bolded part. If your character suddenly cannot even attack, he'd sure be afraid and run. I really don't like how fear does lead to death 90% of the time since it sends your character into a wall where you continue running into it while the mobs beat on you.
Domination Effects: I have one PC with the ability to Dominate, and another who casts the spell. The duration is abysmally short and doesn't really help create role play situations.
I made a big thread about this a year ago, so yes, I totally support that.
Flying Characters: Yes, there are some here. Is it possible to get conversation points put in for PC with exceptional movement types?
Agreed, same goes for shifters who get shapes that should be able to fly long distances (wyrmlings, harpies, etc.), as well as the flying Animal Companions. I think it would be pretty sweet RP for a mage to be in a bind somewhere, and then use their raven familiar to fly the hell over to the other side of the map to get help from unavailable friends.