The magic system needs work. I've posted on this topic both here and back in the EWOM forums. Magic as it stands is limited and a caster Sov is pretty much a waste of time to try to make. There are a few things that can be done to solve this in FE.
1. More mana at start and a much higher regen rate. A cap based on caster level would be nice, but with a global pool not possible.
2. Rebalance cost and cast time of spells to make them equal to weapon attacks. This is were the game is out of balance. If you give the caster enough points to cast spells and do damage like a guy with a weapon, then you can style your Sov and champoins better.
3. Tweak traits to reduce the large bonuses. +50% damage plus shards + others leads to 45 point flame darts that cost 2 mana. I would agree with traits making small boosts to mana gain, and small (10%ish) bumps in damage.
4. Make intelligence a useful stat. Have a few traits and items that can boost it, but tie spell class levels to having the intel to start with. This will force caster into making some tough choises as to which traits to take.
5. Use casting time and cool downs to keep AOE spells in check. Critical in tactical fights.
6. Bring back range limits to strategic attack spells. Right now my casters can cast in any tile I own and in one case on any tile I can see (firestorm, I'm talking about you, again with brutal multiples from traits and shards).
7. There needs to be a way to cast multiple spell effects at different targets in a single casting. Think a magic missile spell with a few darts.
8. Directed attack spells need to miss or be dodged like regular attacks when applied as defendable damage. If the spell is an auto hit, then the cost needs to go up.
9. AI needs to determine better on making a Sov/Hero a fighter or caster. Also doing more to imbue heroes who have decent spells and level.
These changes would place magic back in balance and be fun as well. The idea of a game is to provide enjoyment, but I get the feeling magic is always left in the corner of the room. Tough for a fantasy game. As I get time to mod I'm going to work on implementing what I can of the above items. With the new combat system and actual damage types for weapons and armour there are so many cool spells and effects to be had to make a caster a fun type to play.
My 3 cents.