Why is it a bad thing to have a mage cast deflect and NOT be able to use his offensive spells? no worse than a melee type being forced to parry by an opponent. One spell per round is all we allow for a host of reasons. (let an evil cleric get off a couple of Absolutions, see how that affects your game)
Yeah, I mention earlier that there are some nasty instant spells out there that we need to take into account. Absolutions is the aboslute biggest one (pun totally intended). There is even an in-character way to handle that one however... you're a Cleric and have a deity. Start tossing around Absolutions like they are Halloween candy in a parade and you're probably going to have to explain yourself to the higher ups.
So, about the Mage and deflect question. If a caster is in melee combat they are hosed in terms of casting unless it's an instant. If a caster is standing back, as they probably should, something like an archer can keep them pinned down and largely ineffective. The reverse is generally not true although the caster could try to incapacitate the archer quickly somehow. The archer can typically take what the caster throws their way AND still perform their primary mode of attack. Toss in the (granted unusual) possibility of the archer having an instant that can turn spells and the gap widens (because the archer is just casting one spell and making a physical attack whereas the caster cannot match the end result with a deflections and - say - a Firebolt). While it is likely partially due to our style of play, this resulted in an imbalance of effectiveness in combat.
OK, then how about that old great drake who is tossing two mass words a round? Or even the low level evil cleric spells (dark stunning, dark sleep) or the words off of the Spirit Mastery list (which is what the great drakes will be using). It gets nasty fast.
Yes it can! As Marc mentioned, you need to have a good experienced GM (and players too really). We've been gaming for over 30 years with around 20 of it in RM with mostly the same core group of gamers. So we don't run into the issues a lot of groups might.
One of our main GM's has a one instant and one normal spell rule, which would eliminate the great drake example. As I said, my theory on them is a bit more liberal. Although in the case of something like a great drake I would probably treat it more like an ability than a true spell and thereby state it is a "once per round" ability.
On a side note, instant spells being beaten by a melee casting during the "snap phase" is pretty ludicrous. As is the concept of a "snap phase"
Not possible with my theory. Instants are instant, no initiative required. While there are some odd-ball exceptions (again, Absolutions being a perfect example) think of it like Magic The Gathering instants, they are often in reaction to something else.
I actually really like the Snap, Normal, Deliberate phases in RMSS better than most the other ways a round can be setup. My opinion on it is a bit odd though. The way the RMSS round work are a balance of the easy and complex ways a round could be setup and, in my opinion, is a great place to start with a core round. The important thing about the phases to me is that you have the ability to make a 'sloppy fast attack' in snap if you know your foe is always going to beat your initiative. If the foe wants to MAKE SURE they attack first, then they need to do the same. It's a tactical option that I think makes the round more interesting.
That said, I would personally gravitate to a slightly simpler or more complex 'round'.
My simpler option is roughly...
1) Roll initiative.
2) Openly declare actions in order of worst to best initiative.
3) Declare OB/Parry splits, shield placement, etc.
4) Movement.
5) Resolve declared actions in order of best to worst initiative.
The more complex version I won't get into major detail, but it is essentially a second by second constant round based largely on CEATS.
In the first round doing a "1 Instant and 1 Normal" spell setup is probably better due to the non-phased round. But in the second by second setup just opening it up is the better option for us. As you, I and others mention, you just need to make sure you've got an experienced GM/group... but if you're running second by second in RM that's most likely the case.