The big thing this edit does right imho is to jump over most of season 2. While there are a few things I liked there, it is almost impossible to get around the Phee and Pabu introduction, which always messes things up. Looking forward to part 3 and the Rebels stuff.
Of the points I mentioned, I really think establishing Cid and AZ is the big one, although believe me I GET the urge ro get rid of her. xD