I really like the modularity of the new words of power system. I think the Words of Power system is about having the right tool available for the job. Casters can create the appropriate spell for each situation. I love this concept! I think this system is much more akin to the things I read in fantasy novels. Not the primary impetus for creating the system, I'm sure, but many gamers are influenced by novels.
This being said, I don't think Words of Power has gone far enough. I would like to see Words that increase the damage of spells. This would allow casters to fine tune each of their spells for the situation at hand. Have a bunch of low level mooks running around? No need to waste a 10d6 fireball. Need to quell a rioting mob? How about a mass stun that you can beef up to affect as many HD as necessary.
This would also limit the number of words a caster would need to learn. Learn one acid spell and then apply damage and shape as needed. I think the same system could be applied to summoning, healing, sleep, hold person, and a myriad of other type of spells. This would also make words learned at level one to be effective throughout the entire duration of a character's career.
Just my 2c.