Hi Michael, I can't believe how much we're thinking along the same lines. Using the palette fading for big explosions and lightning and fog was something else we wanted to do, it makes the games much more visually dynamic when there's more flashing going on and it's pretty much a free effect on the Amiga.
As for the game editor it will certainly be open source, I believe there's no point in being greedy about sharing secrets to making good games with the Amiga, it only holds the platform back. If there was readily accessible code for all those effects used in the very best games, any games coming out after them could have improved on the formula rather than the coders having to work out all the tricks from scratch. So if I ever make a discovery on how to make the Amiga do something good, I want to share that with other people so they can do it too, including code.
I love how you worked out a translucent colour effect, it's something I always wanted to use in my Amiga games but wasn't sure if I should plan too much on it if it was going to be too heavy of an effect, so I'm very glad you have found an efficient way of applying it. I do have Amos Pro but I've honestly never given it a go, I was considering it for a while but settled on AmigaE as a programming language to learn. I will install it and check out your example however.
As for the Halloween Nightmare demo, well there's quite a bit we couldn't finish in time, and that includes adding animation to the enemies. Unfortunately Backbone has no option for visual feedback/confirmation of a successful blow on an enemy other than the bullet stopping and exploding. They will continue to move forward until their hitpoints are decreased to zero, the same goes for the player character unfortunately. One trick I've toyed with since though is making each enemy a multi-object enemy, made up of stages. Instead of having three hit points, for example, it is an enemy with a single hit point who dies when hit, but turns into a duplicate enemy after the death animation, which in turn is replaced by a final duplicate when it is killed. This way the 3-stage enemy could change each time, perhaps becoming redder in the face or running faster as he gets madder.