Sounds great, can't wait for an update

If I understand correctly, those mounted spellcaster cast same spell as normal ones ? If so, maybe instead of adding more units there should be promotion or spell that adds 'mounted' to unit, that is possible only in city with Byre ? Yet I have no idea if it's possible for a promotion to change visual avatar of a unit...
Yes, it's possible; I think Ahwaric already did something like that.
Anyway, I'm not sure about this one. May be a good idea... I'll think about it
As for the spells, I think they should be able to take entire category, with possible exception of fourth level spells, where you would have to make some hard choices

As Kha is medic/buffer, making Shur spells different form both Kha and normal spellcasters is going to be difficult. I believe they should have nice selection of buffing, damaging and maybe some summoning and terraforming spells. Good thing is that most of existing Shur spells are good and perfectly usable

Bad thing is that we still need lots of spells
Yay, we need a lot of them!
Ok, so, let's say that each arcane unit can only be useful in one category, either Nature/Body/Spirit. It will still allow it to gain nearly 1/3 of the spells which is okay I think.
For last level... It will be harder to get Heheishur than to get Archmages. Heheishur (and other Shur) won't gain as much free xp as other arcane units. So getting your Heishur to level 8 will be harder than getting your Mage to level 6. Thus, Heheishur should be pretty neat to have.
Perhaps just high stats and the benefits of the IV level promotions. Not sure I'll restrict it to only one four-level though.
Body sphere: I believe it’s easiest one.
Remember one thing: you have to think to both the spells a promotion (level) will give but also to which bonus the promotion itself will give. I think the bonuses from promotions should only come with level II, though.
Also, there's one tiny bit of lore I didn't mention: those spells are actually dances. The Shur, when casting a spell, doesn't read some scroll or move its hand in the air mumbling some nonsense. They dance! They use dance as a mean to move and affect the Green Sea surrounding them.
(Also, it's an effort to make them even more music-oriented, with the dancing Shur, the singing Kha, the moo-ing Cowrider, ... what?)
Eyes path may contain spells that add sentry promotion to units (good to 1st level spell if this sentry is only temporary and/or does not allow taking further sentry promotions), gives you ability to see stealth and bonuses against illusions (as with perfect sight promotion), makes enemies blind (as with Empyrian spell). Fourth level spell may create building that let you see all invisible units within borders, as with Dies Diei.
I like those. I think we could also have something with first strikes and defensive strikes though.
Flesh path have some good spell in current body specialization – I like Drink from the Sea, Mark of Health and Blood of the Sea very much, yet I find Drink from the Sea more powerful then Mark of Health. If Blood of the Sea were just a little bit more powerful it easily could be 4th level spell. First level spell should be some kind of weak regeneration spell (like 5% or something, half or Body II spell). Body is same sphere as Eyes, so giving your recon units both sentry and heal while moving would be nice synergy.
Okay; I didn't think about recycling those spells into the Flesh path but it's a good and fitting idea!
Heart line may contain some buffing spells, like weaker Courage (just fear immune, without healing). Gnolls may need Loyalty spell from time to time, and it’s a good place for it. Third level spell should be offensive spell, maybe something with flavor of heart attack (some damage and adding promotion that slows them down) or demoralize them (making them run away, is it possible ?). If you could take only one 4th level spell making two spells in one sphere similar forces you to make some hard choice. Heart might create building that increase happiness and/or productivity and reduces war weariness of your citizens a little empire-wide or significantly in one city. Increasing population caps in whole empire sounds interesting but is probably more trouble than it’s worth. This one might have effect based on number of Life mana available to make gnolls build mana nodes other than Nature.
What you propose here seems a bit too close to the Spirit category. Plus, I'd like the "frightening" spell reserved to the War Kha

As would be a Courage/Loyalty like. Don't know yet what to use for Heart.
Nature sphere is a little bit more tricky. Sky is similar to Air and damaging spell like maelstrom is a must, but fair winds seems out of flavor as gnolls aren’t very good at sailing. Something similar to severed soul (a wind spirit ?) with its ability to call caster might be good for a first level spell and makes gnolls good at scouting – something they should be good at I my opinion. This would be nice spell to be in two places at once or to escape, but again – probably more trouble than it’s worth and probably a little too good for 1st level spell. Another idea is some archer buffing spell (like +1 to ranged attack) but I don’t know if it fits flavorwise. Third level spell granting ability to fly is my dream

. As for the last spell I thought about some summoning spell similar to fireball but more powerful and lightning/storm flavored – something that summons some (3-4 ?) ‘lightning storms’, creatures similar to empowered fireball but with Air affinity – again, as an incentive to have mana different then Nature.
I like the Fly idea and the summon idea.
But for the Fly one, I think it would be better to have either as an effect of promo for level III or as an effect for level IV. I don't really want a spell giving Flying to other units
And I think this summon idea is definitely in. Seems like a rain dance
With Leaves for a first level spell something like bonus for attacking in forest is better. Double movement in forest seems good also and makes good scouts. I have a problem with second and third level spells – I like current Nature spells very much (Green Boom is great spell, both effect and flavor) but they are connected to Green Sea, rather than Leaves. If we stick to Leaves theme, we need to enchant use of forest. For second level spell something similar to Kha pasture-enchanting ability (but for forester’s lodge) looks good. I don’t know if it’s possible but allowing building improvements on top of forests (like elves do) might be interesting. Upgrading forests to ancient forest is also ok, if possible. Don’t know what would make good 4th level spell.
Hmmm. Yeah, this one is tricky, as is Heart.
Mountain path giving ability to cross mountains sounds like 3rd level spell – and a rather powerful one. Weaker one might be limited to recon units – if next Orbis version doesn’t give this ability to all recon units. For a forth level spell I would like to see something that turns hills to mountains, but should be limited to national borders. This way you could trade some productivity for some strategic advantage. Sound powerful, but it’s strictly defensive spell – and in late game usually you’re attacking rather than defending. Still, spell should have long delay, like 4-5 turns. Magnetic Surge makes good offensive spell, but level two is probably too low.
Yeah, some good ideas there too. Magnetic Surge I'll definitely keep; the first spell I ever designed for them is actually my favorite

Will certainly be level III.
Actually, a IV-level one could select a nearby (or the one you're on, if level IV promo allows mountain-crossing) and turn it into a Moving Mountain unit
Spirit Sphere is most problematic for me. Existing Spirit spells are good, but I don’t really understand flavor of new paths. Dreams path sounds like something that might want Inspiration-like spell for city buff and nightmare as an opposite spell – maybe creating invisible unit that can enter enemy city and give it penalty to happiness or commerce output. 4th level spell might affect dreams of all citizen and enemies in national borders, reducing unhappiness and giving enemies penalty do healing rate (as they can’t sleep). Have no ideas for Breath and Temperance paths – can you tell something more about them ? For now, I’d change one on those into Souls path to avoid wasting current spells. 4th spell with power based on Spirit Mana should also exist.
Breath path would be your Souls path. "Breath" was considered as the "soul" of a person before, seeing how it goes away when this person dies.
Temperance is about restraining oneself to not attain extremes; it's a "middle path" if you want, not too much, not too few. I say it would be this one who should lead to a Spirit-affinity spell.
Dreams is about letting the Green Sea affect one's mind so that it can even see it while sleeping. Most likely it would reduces strength of the user, making her in a pretty bad physical shape due to a disturbed sleep cycle.
I would also consider creating Green Sea path that would be available to all spellcaster, regardless of chosen specialization. You could put existing Green Sea-flavored spells there and use Govannon like ability to teach 1st level spells to arcane units that may learn them (have already chosen this specialization) as 4th level spell. As most 1st Shur spell are indeed 0 level spells that should be weaker than normal 1st level spells this shouldn’t be overpowered.
Actually, I like this Govannon idea but maybe for Banung rather than as a Heheishur spell. Banung as the particularity to be really outspoken and to be the actual person who brought the Green Sea into Ngomele culture; further Heheishur are pretty much egoistic individuals, not willing to share their power.
Also, yes, I'll do this. Actually, I'll remove the "Starts with Nature X" thing and give them a "non-category", Green Sea. I think it will start at level II though; Foam-Touched aren't able to take this path yet.
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By the way, since I moved a lot of things out of the Iron line, I will of course move Nga out of it. She will become a War Kha hero... So that means I'll really need a commander system to make the whole War Kha part worth it. Either FF's or HoTK's.