Re: WoD DnD
I skimmed over it. I would think that there should be a larger window for neutral characters. Just preference really. The divide between saint-like purity and evil to the evilest core is pretty expansive. On the other hand, I'd wager doing away with the alignment scale entirely and adapt Virtue/Vice to serve as goodness/lawfulness indicator. They of course could change at any time, circumstances permit. DnD was never really designed for tales of complicated moral conundrums (doesn't stop me though).
I didn't read too deeply into the whole class thing (again, I skimmed it. I intend to read it in full at a later time). knee-jerk reaction tells me it may be a little heavy-handed. World of Darkness sports a system that espouses character development as a strength over career-driven development. Then again, it might just work.
I like the idea of Arete going to health levels. Makes tougher people.
As another thought, have you looked into WoD: Mirrors? In that book, there already is a modified setting to cater to high fantasy games, albeit dark fantasy. Since Mirrors is a hack book, I'm not going to pound you with the idea that it's irrevocable law that you must play their fantasy setting rules. I'm saying it's worth looking into. Y'know, compare and contrast.
My verdict: Try it out! See if it works for you! If you've got some buddies nearby who are willing to experiment with you, all the better. If it doesn't work, why not? How could it be improved? If it works, happy day! Post your results.