Movies (I know you don't want those, but like I do care ;))
Anyway, to avoid the fatigue while testing a ROM hack, I decided to only do a part of it in this post. Rest of it is coming later when I feel like testing rest of it.
Overall
Hack has its share of level design issues, but there are levels I liked, so it's not like it's completely wrong (it seems like number of boring levels is reducing, perhaps the hack would be better of starting with yours World 2 difficulty or so). The levels are full of power-ups (should probably have their number reduced), and
have slowdown caused by using SNES Slow ROM mode (please enable FastROM in Lunar Magic).
Intro
Issues with the cutscene were pointed out by lion, and honestly I don't know English well enough to correct those things. I think the corrected versions provided by lion are fine, however.
I just want to point out at some point during cutscene there is unreadable text due to cutscene automatically moving forward without player doing anything. Checking Lunar Magic, it seems like you have player appearing over teleport block, which skips the entire cutscene custom sprite.
Debug room
Not tested, quite clearly not meant to be in final version of a game. Make sure you have proper "level" in this place (although level is quite pushing it, a single screen should be fine).
Patched Plains 1
And so it begins. This level feels like a typical first level of a typical ROM hack, and it doesn't do anything fresh. It's also fairly
long, while doing nothing to keep player interested (this problem is repeated in many other levels in this ROM hack). I often see level designers fall into a trap of having to use all the level space Lunar Magic provides. The thing is, 0x1F is really a lot, and many levels won't need all that much - if you don't have ideas how to use that space, then don't - just make your level shorter. Now, I'm aware that you only used 0x1B screens, but that's almost 0x1F to be fair. Also, you may want to experiment with Super Mario World level design techniques of first introducing an obstacle, and then changing it, making it harder, different, or whatever else, instead of keeping the level constantly at the same difficulty.
The game is also
way too generous with power-ups. This seems like a weird thing to say, because many ROM hacks have a completely different problem, but it's true. Essentially, for every three/four enemies there is a power-up block. With SMB3 power-down patch combined with SMW item box, it makes it almost impossible to die due to enemies, because of how many power-ups does player casually get. You may want to reduce number of power-ups, and get rid of SMB3 power-down patch. Even unmodified Super Mario World wasn't that generous with power-ups, usually having two power-ups in a level, not five or so. This is common to the entire ROM hack, so I'm not going to discuss this issue in rest of levels.
I like however how level does highlight changes in the Mushroom Kingdom by having mechanical pipes in the ground. Also, while many people may complain about respawning Midway Points, I actually like that as it helps making deaths less annoying. Your goal as a level designer is to let player overcome the challenge you set up before him.
Patched Plains 2
It's not really clear that you can talk with NPC using Up arrow. In fact, it's not really clear that this in fact is an NPC. Now, I'm not suggesting you put a tutorial how to talk with NPCs (provided by NPC itself, no less ;)).
Rather, I think the entire NPC thing is useless, as the NPC says something like "if you stomp on them, they will self destruct". Players won't read text, video games are to play them, not to read text (of course there are exceptions, like visual novels which are more like books, but Mario games are platformers, not books). In this case, it's clear that the enemies explode because when player stomps them, they start flashing, and later they simply explode.
In short,
show, don't tell. Let player experience something. If you can avoid explaining something, do so. Nintendo did that really well,
for instance, here is design analysis of first stage of Super Mario Bros.. The level itself is pretty much a continuation of Patched Plains 1, and shares the same problems as that level, essentially feeling like two extra Midway Points in that level. I really like the location of secret exit. A coin of slightly wrong color does suggest that there is something hidden, and it neatly introduces invisible coin blocks.
Patched Skyway
This level is really neat up to certain point where it simply feels too long as it keeps reusing the same obstacles. Again, I really like the location of secret exits - overall, you did a great thing with those - they feel really good to find.
Also, the hack appears to have forgot about the entire "Mushroom Kingdom" city thing plot. I wonder when it returns...
Patched Fortress
First of all, the level feels too long again, although it is shorter than rest of levels so far. It's sorta a pattern by now. I find it interesting that you used those spider enemies (essentially slower Thwomps that can be stomped on), I sorta get a feeling you wanted to make something easier than Super Mario World, but it's... not really.
Boss in that level seems weird. You give the player two power-ups before... Boom Boom battle. Yes. Apparently Boom Boom needs two power-ups before it. I did mention the issue with power-ups before, but giving two power-ups (with SMB3 powerdown patch) before battle with boss that was in first fortress of SMB3 is absolutely crazy. Yes, your version has 4 HP points, but that doesn't justify it.
Rubber Cave
I really feel like those barrel (?) things should be pipes. Again, cool secret exit. Too bad the level feels too long and boring.
Riverside Hill
There is sewage, but the water isn't polluted. Okay then... I don't know what means, but cool. I suppose it's trying to explain water from pipes? Is there really need for an explanation? It's a magical land where coins can float in the sky. Again, show, don't tell. Oh, and nice to see mechanical pipes back. Again, long uneventful level.
#1 Clockwood Virus
So, I kept making fun of how every single level is long and boring. There is however a reason why I didn't just say that every level is boring. You see, this level actually has some interesting things going on for it. It's still somewhat long, but it doesn't really feel all that bad this time as it has its share of interesting things. It's first level in this hack which introduces a concept, and then puts a harder or different version of it later, just like Super Mario World does, and does vary things a bit.
Cutscenes don't work again. And it's once again problem with teleport blocks. The boss itself feels like typical boss made using Ultimate N00b Boss sprite (can tell by its chase mode, which is in my opinion not fun to battle against, and if not for a bug in that sprite that causes boss to not deal damage while damaged, it would be crazy). Flashing while damaged feels weird, but I cannot really suggest how to fix it.
First world bonus world stage (unnamed)
Yellow Switch Palace
This stage feels pointless. Essentially, collect 50 coins without any obstacles to deal with. Simply, a filler. On sidenote, I'm really not a fan of having invisible coin blocks in this stage, they are simply trolling - haha, you cannot finish the level because you didn't find the invisible coin blocks, and you cannot even die because there no time limit, pits or enemies - I'm so smart, am I not? No. That's not fun. This level is just waste of player's time. Just have something else for switch palace, this level should be scrapped and replaced with something else.
Anthill Workbench
I really don't feel like writing again what I wrote in pretty much every single level description. Sorry. (hint: long and boring)
Scary House
This on the other hand is a trainwreck. Essentially a boring Ghost House level with barely anything happening, and then pick a door. If you pick a wrong one, you return back to beginning. One of many doors leads to normal exit, another to secret exit. Perhaps there is a hint to that, but I haven't seen one, and if there is, it's probably not really clear. Enterable doors look differently to fake doors, but at the same time fake doors just cause Boos to laugh, so they are fairly pointless. Also fake doors are fire-proof (like, they stop fire)? Huh?
And the level boss is... unmodified Super Mario World Big Boo Boss fight with different music. There is so much that can be done with Big Boo, but you didn't. Please understand? Nice to see you tell in advance that all Ghost Houses have two exits however.
Western Sands 1
SMB3 Bricks are totally suspicious. Ignoring that this advice is really not needed (you could instead have a safe encounter with those, perhaps fake brick hidden inside of pyramid, so that the player could safely see how they work), is it needed to highlight those are SMB3 bricks of all things? Does the player need to know they come from Super Mario Bros. 3?
And again, this level feels repetitive with all its obstacles.
Western Sands 2
Zzz...
SCP-409 Fortress
The level says that enemies can be killed by it, and yet, I don't think you can ever make enemy touch SCP-409. And apparently plumbers won't crystalize when touching it, just die. Fair enough, sometimes you just have to separate plot and gameplay, otherwise game would be unplayable.
Small gray platforms could be introduced in a better way, without needing to depend on text (which I don't really understand anyway). Essentially, make player start on such platforms (or require them to stand on such a platform to perform a jump), and force them to jump. In fact, the first encounter with those would work for purpose of introduction, as long the first such platform would be removed (only second would stay). That said, the level actually has interesting elements to it with it gradually becoming harder.
And... boss is Boom Boom. So anticlimatic, but I suppose I should expect Boom Boom every fortress?
Lakitu's Oil Fields
Oh no, there is strong enemy. What will I do? Nothing hints what is that "strong enemy". I suppose it is Lakitu, but why notify me in advance about it when the level name outright hints that?
Disappointing how throwing fire balls into oil doesn't cause it to burn. I would expect that throwing fire into oil would cause fires. On sidenote, foolish of oil fields owner to put Fire Piranha Plants near oil (as well as prize blocks with Fire Flowers). I understand he wanted some pets on his oil field, but couldn't he have picked something less threatening to oil?
I like how the level changes its gimmick somewhat in second part by replacing flying Lakitu with many pipe Lakitus. Neat change of gimmick when the old one started to get a bit boring.
Power Plant City
Luigi's casual violence over way too many Rexes. Yay (seriously, Rexes aren't any sort of a threat in this level)! And a weird gimmick that level doesn't really do much with (and really, a lot could be done with it, for instance
here is a level by levelengine made for MaGL3 contest using those blocks). Either way, it's not all that bad, but the gimmick could be used better. In second part of a level, there is slow smasher section. I think the entire section could be just scrapped, as it's really slow and uneventful.
#2 Power Bomber
The first castle was an interesting level, and this one is relatively interesting too. I feel like you could introduce bomb blocks in a better way, but I suppose the spinjump thing isn't really obvious. Perhaps it would be a good idea to scrap the entire requirement of spinjumping, or perhaps have a following pattern - power-up, turn block, and block bomb below turn block - this would make the player try to spinjump on turn block and inevitably spinjump on block bomb.
Cutscenes don't work again and the boss is Mouser. Somewhat unfortunate that there are no good Super Mario World bosses... I think I battled Mouser for 23848124589th time or so. That's about it for now with reviewing... ahem... testing. Coming later to review worlds 3 and 4.