[Soapy]

I agree with essentially everything as listed in the OP, except:
Blessed is probably fine, Faith isn't exactly the best stat.
Distortion is already more expensive than Fortune Wind, for a smaller bonus. I think it should be reduced to 35-40 at max rank and otherwise unchanged.
Yomidori is fine as-is, though it does need to be changed not to apply when hit by start of turn status effects/damaging tiles.

Dev:
I think Zugzwang would do well to give Crit instead of Hit.
Your Flanking idea is perfect.
The issue with Flatfoot is primarily that it's percentage based.
Blind can very easily be applied via Altera, Star Stream, and Papilion butterflies. I use all three of these and think -50/-25 is plenty fair.