I wanted to say I really enjoyed this patch. It's been a long time since I played 'Vanilla' Zelda 2 without cheating for heaps of extra lives and levels, but the rebalanced magic and permanent extra lives made the game feel like it was at a natural and fun difficulty. I didn't even need to gather that many extra lives, which felt great. I also really like the new sword and shield in Rev's sprites.
I do have a couple of very minor criticisms. To be honest, I can patch them myself, but I thought they would be worth bringing up - especially as so much work has gone into this already!
The first is that the icon for the defense stat is a shield with the Triforce symbol on it, but such a shield never appears in-game. It seems like it would make more sense for it to be a shield with a cross on it.
The second is that some of the dialogue seems very matter-of-fact. While the longer text-boxes allow for some much-improved lines, a handful seemed jarring to me. For example; the thirsty woman in Nabooru says "I see you have water. You should come to my house." Like, damn girl, did you even drink it? I feel like something like "Is that water for me?" or "You brought me some water?!" might get the same message across without feeling so stilted. Similarly, a boy in Darunia says "A powerful swordsman lives in this town." Alright, kid. It might feel a bit more childlike if it were "An amazing swordsman" or something. Also, some men in the first towns often say "I am a little busy to talk to a stranger," but it ought to be "I am a little too busy..." - removing the "too" from the original text means the sentence doesn't really make proper sense.
Like I said, tiny issues that are barely worth noting. If it's not worth your time to patch them out, that's fine - I've already made a personal version with a handful of altered sprites and dialogue that I can add these suggestions into anyway. Thank you so much for all the time and effort that has already gone into this project, I'm in absolute awe of your abilities to make these improvements to the game.