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AoE first:
AoE is not the game breaker, no one needs AoE to do well, AoE is not a crutch upon which all competitive teams must lean. AoE is effective simply because it allows you to damage an entire team.
However
Look at it this way, say your damaging teh entire team. What is more important, taking everyone down to half health in a gank, or killing off 2/5 of them? Half health is "POTENTIALLY" more damage dealt even, but I do believe everyone would agree that killing off 2/5 of the enemy team is much more effective.
That is taking a small part of the game, and yes, there are many other factors, but single target powerhouses have their place in Dota just as they do in HoN. And to say that its the AoE that makes a hero powerful is belying the entire strength of many of the heroes, unless you are truly trying to say that a hero like Glacius is useful for their AoE, or Pharoah.
AoE is powerful, but it is not nearly as good as you think it is.
Blink:
The argument against blink, and the argument for trying to say blink is powerful, has been stated a number of ways in this thread.
One of the major ones, which keeps getting repeated, is "Almost all heroes get blink", or stated by a few less stupid people, "A large majority of the competitively viable heroes get blink of some form".
Thus the reason I've proven fairly effectively that that is completely rubbish.
As such, saying that blink itself is the problem is more a case of an individual hero by hero basis as the majority of viable high tier picks does not include blink/portal key heroes, despite what many would have you believe.
Saying that it allows you better positioning is true, it does, thus the reason its useful. Indeed, that, and the armour, was the reason phase boots (Enhanced Marchers) became instantly spammed on every hero in Dota when it came out. Now that the changes have happened though the emphasis has moved back to a majority of Boots of Travel, though alot of phase boots are still used..
But at the same time, it also costs you 1/5 of your expected gold, makes you fragile, less damage, less mana, and less likely to survive.
The number of heroes who use it to, as the OP says:
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go from not close enough to the battle to right on top of your head
is few, because in order to do so you must be an AoE disabler who can then also survive the fallout after that AoE disable has been dealt. Whats more, you will never get an entire team with that one blink, so you must be able to survive long enough to be a threat (thus the reason that Enigma see's relatively little league play). Blinking into a group of 5 heroes, if they can't kill you in the time it'd take the other 2-4 players on your team to catch up to you, then its more a case of an inept team than anything else, with a few exceptions of proper initiators who can tank, in which case you wait for the fragile heroes to come in while your teammates are disabled and take them out. Yes, its a situation that can go either way, but at the same time, a game can go either way until the last gank.
Whats more, as will be discussed below, its not as clear cut as you seem to say for getting that blink dagger early.
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Heroes are balanced in terms of their strength and weaknesses. Many of the strongest heroes are those with the best AoE/Ults. However, their issue is getting in to the thick of things to get them off. Portal key is a free pass. Low HP heroes need to spend far more than 2200 to gain a lot more hp to cover their weakness. Mana dependent heroes need to farm big items to have a decent pool/regen. DPS heroes spend truckloads more than 2200 to get their damage rolling.
The heroes are not balanced just based on heroes, but based on items, map shape, rune spawns, creep strength, and MANY other things, so portal key is taken into account for these heroes. You will notice almost every hero who buys portal key can not support it as their first ~2k worth of items, requiring boots, probably a fortified bracelet or two, and maybe something else first, pushing the gold to something close to 4k to 5k worth, which is about the 30 minute mark of a game.
(Rather than discuss it here, I will wait for a silly idiot to say "Nuh Uh, Tempest can get it in 15 minutes" before I actually explain just why that person who posted that is an idiot)
That means that there have been many many ganks which have happened before the portal key even enters the equation, and during that entire time the heroes need to be viable without portal key otherwise they are not generally used, especially since a pushing strat, which can be quite common, will destroy that heroes farming for a portal key.
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Heroes without these ability or that benefit little from them become far less useful in HoN. Movement and positioning is the biggest issue in Dotaesque games. No point having the super ult when you can't get it off.
Here you go Verix, this is the exact point I countered with my list of heroes which are competitively viable. Enough said.
Finally
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Basically, this changes the entire dynamic of the game. Many skillful items (juke spots, cliffs, LoS spots etc.) become irrelevant against blinks. Proper positioning to pull off a great initiation is moot.
The dynamic of the game is already built around blink, so what you propose with removal/change of blink would CHANGE the ENTIRE DYNAMIC of the GAME. Your point is that the way the game is currently has changed the way the game is currently..... hmmm
Oh, and the other thing, saying that specific things are useless, like
juke spots - Incredibly useful, you can't blink into a juke spot very effectively, blink has a large cooldown, and the MAIN thing about juking is not being seen, which is still, and will forever be, there, no matter what. I Don't see how blink breaks juke spots at all
cliffs - Same confusion here, Cliff's still give a miss % for ranged attacking up, cliff's still provide a barrier for the majority of heroes for the majority of the time (one attack means 3 seconds of escaping befoer a cliff stops being an obstacle). Indeed, you can even juke with a cliff's fog of war effectively.
LoS spots - How does blink stop these being effective? You think that people with blink dagger always travel around the outside of such spots so they can't be seen? You have to at some point walk through the neutrals if you want to gank someone behind the bottom sent tower, and that means you must cross at least one useful line of sight position. Unless you think you should waste mana and that cooldown to blink past them and tehn walk into the gank?