SPELL NAMES-----------------
I don't think level 1 - 2 - 3, etc are much better.
-----LETTERS--------------------
Not really...you wouldn't capitalize letters for animals that you would see, would you? "On my way to the store I saw a Rabbit". I guess they should possibly add an 'a' in or something, but it's not really that big though so I guess it doesn't matter.
-HUNGER SYSTEM -
No. If your hunger bar would reach 0 then you would die. I guess that was a little harsh and that is why it was replaced with illness. The zero on the hunger bar should symbolize your character's absolute limit. If you were to get weak due to hunger, then it should happen at a higher number, say 50 or so, but then you sould die at 0.
I suppose the whole illness thing is fine though.