Okay, I have some good news and some bad news.
The bad news is, the latest versions still have the bugs that cripple the quest, meaning I'm still using build 1074 for the next version. For now...
The good news is, I have noted the advanced enemy editing and plan to take advantage of it when a much less breaking build comes out. Currently, the weapon damage types are Sword, Arrow, Magic, Bomb, and Super Bomb, due to how the items are managed (scripts don't support Hammers or Hookshots well). I plan to make the few Magic-damaging weapons more useful by making the Lv.2 Pols Voice the new Magic Variety (Weak to wand), but will allow Arrow-damage to still hurt them. I also plan on at least 1 enemy immune to Sword-Damage, to avoid leaving that damage overly useful. Also, maybe a Bomb-weakened enemy or two... Despite this nice new feature, I don't plan on adding any more enemies than initially planned.
Once again, I made a contest for ideas without fully explaining what limitations of what weapons can actually do (though the ideas may still be useful one day...)
First, my opinion on the curent ideas:
Fairy Sword: Easily the best suggestion of them all. Right out of a Zelda game, a sword with a larger swing than normal with sword beams (currently all weapons with that arc don't get beams). The only flaw is that the beams will always be unlocked at 2 Spell training, and only shoot at full life. This is for balancing, because the beams have infinite range and damage equal to the "sword", making them overpowered to several ranged weapons. Also, they can be spammed easily. I also will make the Fairy Sword look closer to the Majora's Mask version, since the Magic Sword (Original Zelda) and Imbued Sword (slashing version of the White Sword) look similar to the Fairy Sword from LTTP.
Fire Arrow: On one hand, the Golden Arrow (which will appear in the next version) already has the "pass through" feature. On the other hand, the fireball shooting isn't supported in the scripts. What I can make it do is EXPLODE on the first enemy it hits, similar to the Bomb Arrows, but then the Fire Arrow keeps going (it just won't explode again, for balancing reasons). It would go well with the Fire Blades and Fire Boomerang. If a better ranged weapon is suggested though...
Black Hole: Sounds like a Mine-type weapon, only with a Super Bomb explosion. Considered, since the only mines in the quest currently have normal explosions.
Cross Bomb: Unfortunetly, this isn't a SHMUP (or however it's spelled), so fancy explosions are not possible. It can explode with Cross-Shaped shrapenel fired in, yes, a cross shape. Considered.
Power Shield: The existing Barrier-type weapon deflects a set number of projectiles before automatically dissapearing, and dissapears when an attack is used (though a certain attack type has an additional effect with the right conditions). Nayaru's Love is planned to be the ultimate version of this, but adding the option for the barrier to NOT dissapear when attacking is being considered.
Thunder: I could always make the ultimate Spell weapon be a Room Damage-type and have thunder be one of them. Considered, but this would not only add a new attack type, but also include the request for a second weapon of this type (I want at least 2 of each weapon type).
Laser: I was hoping for a Beam-weapon suggestion, but the current second one (not in the demo) is very close to the idea suggested: long duration to do constant damage (the opposite of the low duration, high damage lightning currently in the demo). Can I have a slightly more Zelda-themed beam?
Teleport: Not likely, the Switch Hook is already sequence breaking bad, but hard to use.
Tornado: Why am I suddenly thinking of New Super Mario Bros. Wii? Interesting, but a bit odd to implement.
Bat Form: Alas, the current engine doesn't support changing the character appearance THAT dramatically. The Dash-type weapon is close to what this does as well.
To give you an idea what the existing weapon types are:
Melee Types: No more suggestions needed.
Ranged Types (Most can Rapid Fire or Explode is desired):
Shot: A standard, stright line projectile.
Throwing Object: A weapon that moves in an arc as if thrown. Both current weapons of this type are a Thrown Hammer and Jar.
Slowing Shot: Moves like a candle flame.
Doble/Triple Shot: Two or three weapons fired in a line.
Three Way/Four Way Shot: Weapons fired outward in a + pattern. Three Way doesn't fire behind the player.
Unstoppable: Keeps going after hitting an enemy.
Consecutive: Two or three weapons fired with different speeds and durations, all in the same direction though.
Spread Shot: Three weapons fired in a fan pattern.
Explosive Types:
Bomb/Super Bomb: They do what you expect.
Thrown Bomb/Super Bomb: Launched in an arc like the Throwing Objects.
Shrapenel: A normal bomb with shrapenel in either + or X directions.
Mine: A bomb that explodes when an enemy is close.
Remote Bomb/Super Bomb: Bombs that don't explode on their own. After setting down a certain number, the next press of the button explodes all of them at once.
Instant: A Super Bomb balst at the player's location. Has bad cooldown.
Spell Types:
Aura: An expanding aura that deals damage to enemies within it. Does Type damage, such as Arrow damage to OHKO Pol Voice.
Barrier: A temporary barrier that blocks a set number of enemy weapons before dissapearing. Dissapears when the player attacks for balancing.
Weapon Shield: Four weapons spin around the player, who can still move around and attack. Think Mega Man shields here. Beam: A laser/lightning the goes across the entire screen, damaging enemies in it with Type damage.
Summon Turrets: Creates a non-moving object that fires weapons toward enemies. The advanced version fires weapons at exact angles.
Summon Attackers: Summons an object that attacks for you. Melee types do collision damage, Ranged Types take aim to fire weapons, and Exploding get close to do a Super Bomb explosion.
Motion Types (a.k.a. the Other category)
Boomerang: Moves like the standard Zelda boomerang.
Dash: Moves the player forward quickly. Ignores gravity when used in the air.
Curve Boomerang: A more 3D-styled Zelda boomerang.
Charge: Like dash, but with a weapon in front of the player. Gravity will affect the player.
Overhead Boomerang: A Mario Bros. 3 inspired boomerang that curves in the Z axis.
Hookshot: Acts like a hookshot, except it does pull items toward the player (Arrow-types do get the items though).
Switch Hook: Like the Hookshot, but can switch the positions of Link and an enemy. Very risky, as you can get stuck using it. Trap: A non-moving weapon that is used as a trap.
Grab and Throw?: Functions a bit like the Gust Jar. Hold down the attack button to suck, release to fire. Enemies near the weapon when sucking lose health, regardless of most invulerabilities, and released projectile gains power from drained health. Hard to use.
I can make minor adjustments to some of the weapon types, but not too dramatic. The Hookshot-types are currently underpowerd because there are no hookshot blocks (or that part of the script implemented), and the Grab and Throw type is designed mainly for the Gust Jar weapon (it doesn't show any sucking animation) and may be buffed to pull nearby items closer. Also, Ground Pound is a melee type weapon, even though it sounds like it should be a motion type weapon.
Still Looking For:
1 Ranged Weapon (Optional, since the current suggestion for it isn't too bad).
0 Explosive (unless a better suggestion is made).
4? Spell (I want a Zelda-themed Beam, the suggested barrier may make it in, and a new Spell weapon type may be created).
2 Motion (Don't suggest any standard boomerangs though. I have at least 4 of them).
Familiar Weapons to look forward to:
Magic Sword (Stab-type Melee)
Golden Arrow (Unstoppable-type Ranged)
Biggoron's Sword (Long Stab-type, due to tile limitations)
Wand (Shot-type Ranged, only the projectile, not the Wand itself)
All 3 Goddess Powers (in the appropriate weapon types. Din's Fire is an aura, Faore's Wind is a dash, and Nayaru's Love is a barrier)
Fire Boomerang (Boomerang-type Motion, damages enemies including Wizzrobes, but doesn't collect items or OHKO Pol Voice)
Other Things to Look forward to:
Power Bracelets (yeah, even though they're boring)
Timer Force Ability: Summons a clock for temporary invincibility.
Sword Force Ability: All attacks shoot a sword beam (for no good reason). This stacks with normal sword beams, leading to a silly situations.
Improved Top Secret Weapon: It will futher imitate something from LA. And finally be able to damage enemies.
Two Level 9 bosses that are not Ganon (guess which two this pair is..)
Eventually the 4th Quest dungeons, which is where the 10 fan-suggested weapons will appear. Ganon is the Level 9 boss, with a high chance of another boss battle after his.
Also, the previous post was short a screenshot due to the new forum limitations, so...

Finally, a little note about the scripting/puzzles in the quest.
I plan to make all the currently solid "pits" instead act like the bottumless pits from other Zelda games.
The other planned trap is a seemingly innocent object that "reveals" an enemy when close. A rupee becoming a Like Like would be devesating and a good reference, except rupees normally don't appear in the open. Instead, expect keys that are enemies in disguise, or statues that really are not. Later themed dungeons may bring back some of the previous gimmicks, or have new ones.
In the distant future if I have time, I'll make the "Oracle of Ages equilivent", or in other words, a much more complex, less combat (or rather, enemy) heavy version of the quest (for reference, Oracle of Seasons was the more action based of the two).