That is a fine fix too. One point is just too cheap for unlimited.I disagree. I think the issue is more "Unlimited Cloaks at 1 HM per purchase." That's certainly an issue; I'd raise Cloak to 2 HM (6 build for a single-use per event ability seems fair). Sure, you could have a caster with a whole buncha High Magic memorize a ton of Cloaks, but that's a whole lotta build they're not directing towards something more generally applicable.
I also suspect that there's going to be waaaaaaay less Formal Levels in the game, under the current proposed rules.
I do think you are wrong about formal levels, at least for the god class celestial. When you buy formal as celestial you get the high magic, More wand damage, more wand charges, and the ability to cast formal. I was planning on getting at leaset 30 levels, far more then I have ever had before. 30 cloaks, more wand damage/packets, it is pretty great value for your build spent.