It's a few weeks in and I am really liking this kit. Thanks so much for the feedback! I've taken it to heart and:
-added a filter straw
-added a few MicroPUR tabs to my canteen kit
-removed the black PSK bag, along with the extra folder, mag bar, extra duct tape, squeeze light
-moved the mini repair/fishing kit to my FAK
-replaced the birthday candle with a trick birthday candle
-added a Buff in lieu of a winter toque (baseball hat season is back but we're still dropping close to or below freezing)
I'm still thinking about the straps, but the leather belt is working just great. It's the perfect length and the kit weighs little enough that it's really comfy slung over my shoulder. I think I may just leave it as it is.
Back to the hatchet for a moment... here's a little video about my usual day hike sharps. As it sits this morning, this little kit has only my Mora. (I've always got my EDC SAK too.) The others are living in my bigger kit, unless I plan on using them.
Youtube:
http://www.youtube.com/watch?v=M8OysTFxfqoUntil I fix by unsafe hatchet, I'm using the good old family hatchet: